|With official inflation likely to end 2021 at around 60% or higher, leading local asset management firm Imara Asset Management says it expects further strength in the Zimbabwe Stock Exchange over the course of the coming five months. This came out in its results for the half year ended 30 September 2021.|
The second half of Imara’s financial year has started on a strong note following continued strength on the ZSE. On historical cost accounting, Imara’s funds under management ended September at ZWL24.4 billion as compared with ZWL12.9 billion at the end of March, a gain of 89% over the six month period.
This was attributed to a strong stock market.
While funds under management drive its revenues, topline growth to ZWL93.2 million over the first six month period as compared with ZWL$68.1 million for the full year to March 2020. Net profits ended September 2020 at ZWL$33.8million as compared with ZWL$22.2million for the full year to March 2020.
“Comparisons with previous years are meaningless given the inflationary environment we have been operating under. Needless to say and given these circumstances our balance sheet remains strong and in excess of the SECZ’s capital requirements,” said Chairman Peter Bailey.
The board renewed dividend payments in 2021 due to strong cash flows and has declared an interim dividend for the year to March 2022. At the same time, the company has continued to provide support to its staff whose cost of living allowances have been increased substantially during the period under review.
Bailey said the second half of Imara’s financial year has started on a strong note following continued strength on the ZSE. October saw the ZSE Industrial Index rise a further 32% whilst Imara’s FUM rose by 28% to ZWL$31.1billion.
Meanwhile, activities on the floor of the ZSE started on a positive note on Monday after the market recorded a 0.34% growth at the close of transactions. The All Share Index rose 0.34% to 10,749.54 points.
Gains in Econet saw the Top 10 Index rising 0.66% to 6,715.62 points. Telecoms giant added 8.40% to settle at ZWL$62.43 leaving year to date gain and market cap at +557.60% and ZWL$161.75 billion respectively.
Conversely BAT and OK Zimbabwe fell 6.9% and 2% to settle at ZWL$2700 and ZWL$25.25 in that order.
On the price movement chart, construction firm Masimba was the best performing stock, chalking up 18.8% to close at ZWL$57 while ART garnered 9.5% to settle at ZWL$11.
On the flip side, Axia suffered a 7.6% loss to settle at ZWL$30.71, while FMP depreciated by 6.3% to finish at ZWL$7.99. Hospitality group RTG lost 3.2% to ZWL$5.08.
As a result the Medium Cap Index retreated 0.49% to 20,730.72 points.
Nickel miner BNC was up 5.3% to ZWL$5.47.
Fidelity Life climbed 6.7% to ZWL$9.60.
However, the Small Cap Index fell 1.99% to 390,108.80 points – Harare