• Mon. Apr 15th, 2024

‘Blended inflation figures might not present the correct outlook’

ByEconomic Times

Apr 14, 2023

…as ZSE registers weekly decline 

By Pardon Tarisai

The Zimbabwe Stock Exchange (ZSE) fourteenth (14) trading week of the year 2023 was not so impressive with a slight negative slide of the benchmark, the ZSE All Share Index, which lost 192.84 points (0.50%) thus closing at 38 375.64 points. The total market capitalization fell by 1.76% to close at ZWL$3 181 183.23 million.

The total number of listed securities during the trading week is fifty-one (51) which includes forty-five (45) equity securities, five (5) Exchange Traded Funds (ETFs) and one (1) Real Estate Investment Trust (REIT). The top five (5) weekly movers were Truworths (ZWL$3.11) 26%, FBC Holdings (ZWL$120.00) 21.87%, NMBZ Holdings (ZWL$60.07) 13.34%, Star Africa Corporation (ZWL$1.70) 12.18% and TSL (ZWL$111.43) 11.43%. The weekly shakers were dominated by Turnall Holdings (ZWL$6.00) -14.37%, Econet Wireless Zimbabwe (ZWL$235.46) -11.95%, Zimre Holdings (ZWL$10.71) -10.79%, Willdale (ZWL$3.53) -9.71%  and First Mutual Properties (ZWL$14.99) -8.16%.

During the last trading day of the week, 6th of April 2023, the ZSE All Share Index performance by year to date was 96.86%. The top five (5) year to date leaders were Tanganda Tea Company (ZWL$350.00) 291.64%, Nampak Zimbabwe (ZWL$32.00) 255.16%, Hippo Valley Estates (ZWL$635.49) 248.03%, Proplastics (ZWL$100.00) 203.03% and Seed Co (ZWL$216.90) 191.06%.

The weekly performance for ETFs ranking from the best was as follows; Old Mutual ZSE Top 10 ETF (ZWL$10.92) 9.19%, Morgan & Co Multi-Sector ETF (ZWL$31.00) 4.58%, Datvest Modified Consumer Staples ETF (ZWL$1.85) -0.54%, Cass-Saddle Agriculture ETF (ZWL$20.52) -2.27% and Morgan & Co Made in Zimbabwe ETF (ZWL$1.93) -3.59%.

There was no change in weekly performance by the only listed REIT, Tigere REIT (ZWL$50.62).

The year to date performance for ETFs was led by Morgan&Co Made in Zimbabwe ETF 69.93% followed by Old Mutual ZSE Top 10 69.55%, Morgan & Co Multi-Sector ETF 34.78%, Datvest Modified Consumer Staples ETF 18.59% and Cass-Saddle Agriculture ETF 14.02% in that order. Tigere REIT year to date performance closed week 14 at 23.52%.

Weekly performance by other remarkable indices was as follows; the ZSE Top 10 Index (0.2%), ZSE Top 15 Index (0.97%), ZSE Small Cap Index (- 4.32%), ZSE Medium Cap Index (4.23%), ZSE Consumer Discretionary Index (16.4%), and ZSE ETF Index (1.66%).

Zimbabwe has formally moved to adopt a currency weighted consumer price index as the official measure of inflation to reflect the dual currency structure. Monetary authorities perceive that domestic expenditure is now 75% foreign currency denominated and as such blended inflation will aptly reference the trajectory of the economy.

The annual inflation rate took a dis-inflationary path easing from 101.5% at the start of the year down to 87.6% at the end of March 2023. The Interbank Rate (USD/ZWL) closed the week at 945.94 representing a weekly local currency depreciation of 1.73% and a year to date local currency depreciation of 37.63%.

Blended inflation figures might not present the correct outlook since the local currency has been under pressure as depicted by the sharp depreciation and the widening gap between the black-market premium and the official exchange rate which is trailing way behind – Harare

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