By ETimes

The Zimbabwe Stock Exchange ended the Friday session down 1.75% to close at 12,097.36 points‚ with all the main indices closing in the red, as investors trade cautiously amid uncertainty over elevated food price inflation.

This comes as high food prices combined with the recent spike in energy costs is pushing food price inflation up in several low-income countries such as Ethiopia, Zambia and Zimbabwe, according to the World Bank’s latest Commodity Markets Outlook.

“Local food prices have surged this year in response to the ongoing spike in energy and fertilizer prices, Covid-19 induced supply-chain constraints and depreciation of some currencies,” WB said. The net effect, WB said, is elevated food price inflation.

It revealed that global food prices have increased by 34%.

As for the southern African nation, the majority of businesses have ignored threats from the authorities as they are indexing prices of goods and services at parallel market exchange rates. The Zimbabwean dollar is officially trading at 93 to the US dollar and at 80x on the black market.

Meanwhile, the local bourse struggled for direction for most of today’s session. The ZSE Top Ten Index was down the most after losing 1.89% to 7,678.83 points after losses in Meikles and Innscor. Meikles pared 8.94% to ZWL$170.0000 and Innscor dropped 6.31% to ZWL$192.0000.

Beverage maker Delta shed off 7.35% to close the session at ZWL$165.0000. Losses recorded in some of the blue-chips helped drag the all-share index lower.

But, banking stock CBZ found some momentum in today’s session as it led the risers gaining 20% to ZWL$114.0000. Fintech giant Cassava put on 1.64% to ZWL$51.0000.

The Medium Cap Index was off 1.60% to 22,864.87 points at close of the session.  Banking stock NMB led losses on the day as it fell 13.98% to close at ZWL$12.0000. ZHL ended the day 12.48% softer at ZWL$3.5000.
Clothing retailer Edgars, which had a tough half year, eased 12% to ZWL$4.0000. It lost seven trading weeks to Covid-19 induced lockdowns and demand for clothing over this period was lower than normal.

Cumulative units sold were 945 000 as at end of Quarter 2, which was 2% below last year.

Edgars had to increase borrowings for rentals, utility costs and “ensuring that our employees were remunerated on time”.

This month, despite depressed consumer disposable incomes the company is “looking forward to the opening of Edgars Avondale, and Jet Hwange stores.”

At the end of June the company had US$190 000 in foreign liabilities which it “is able to service from existing resources.”

Other significant losses on the day were recorded in Zimplow which fell 10.50% to close at ZWL$19.0000 while SeedCo Ltd closed at ZWL$128.0000 after losing 10.26%.

Gains were also recorded in hotelier African Sun which climbed 10% to close at ZWL$11.0000, Turnall which picked up 8.33% to close at ZWL$6.5000 and construction firm Masimba Holdings closed at ZWL$4.2500 after gaining 5.11%.

The Small Cap Index closed the day 0.43% weaker.

Media group Zimpapers inched 15.46% firmer to ZWL$3.15000.

Turnover was lower at ZWL$86.06 million after 2.50 million shares traded – Harare

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