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    ZSE extends losses on week ending, recorded negative USD gains in May

    By ETimes

    Zimbabwe was the top loser among eight sub-Saharan African (SSA) stock markets which had negative US dollar returns in May 2022, latest report shows.

    African Financials Top 30 Companies shows that in US dollars, SSA (excluding South Africa’s) was down 2.8% in May 2022 but up 4.2% year to date. Eight of SSA ex SA’s fourteen stock markets have risen year to date.

    On the downside, it was Zimbabwe, which fell 32.8%, followed by Kenya at 14.9% and Ghana completed the top three losers at 8.1%.  

    Analyst Yona Banda said it shows the value eroding effect of Zimbabwe’s inflation problem.
    “I think the effect is being worsened by a cool off in the market after the surge experienced in 2021,” he said.

    This comes as the headline consumer price inflation ballooned to a 12 month high of 131.7% in May 2022 up from 96.4% in April 2022. This also marked the first time the annual inflation rate crossed back into 3 digit level since June 2021.

    According to the report, High Sharpe ratios and low standard deviation of returns feature Botswana, Tanzania and Malawi.

    However, Zimbabwe takes the top spot among the 8 sub-Saharan African (SSA) stock markets which had year-to-date US dollar returns.

    Market watchers say there are few Zimbabwean dollar assets and exchange rate movements are forcing investors to dispose of their money quickly or put it on the local bourse as a way to hedge against inflation.

    On the other hand, Econet Wireless was named among companies with the highest price-to-earnings ratio. “47.3x with a share price at 238.42 ZWL,” reads the report.

    Meanwhile, the mainstream ZSE All Share Index fell 1.83% to close at 21,073.30 points on Friday, extending losses for the ninth session.

    CBZ led the gainers’ chart, adding 11.94% to close at $143.00 and left its market capitalization at $982.74 billion.

    On the contrary, Ecocash recorded the highest loss, shedding 11.49% to $77.42 while OK Zimbabwe trailed with a loss of 8.13% to close at $37.93. Innscor dipped by 7.51% to close at $434.38. As a result, the Top 10 Index suffered the most as it succumbed 2.48% to close at 13,178.29 points.

    The Medium Cap Index was off 0.29% to close at 40,627.22 points. ZHL and Tanganda which lost 9.62% and 1.19% to end at $5.00 and $228.94 respectively.

    However, gains were recorded in Dairibord, Edgars and Starafrica which gained 11.11%, 8.87% and 2.91% to finish at $50.00, $5.00 and $1.85 in that order.

    The Small Cap Index was the only gainer, with 3.18% to 499,070.29 underpinned by gains in media group Zimpapers. The counter climbed 10% to close at 5.50%.

    Turnover declined 75.28% to $675.56 million. With regards to the value of traded stocks, Delta took the lead of the top 5 performers, flanked by Simbisa, Econet, Ecocash and Innscor.

    Market capitalization was down 1.71% to $2.66 trillion.

    On ETFs, the OM ZSE Top-10 was off 6.18% to close at $10.3204. Others were virtually flat – Harare

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