…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