• Sun. Apr 14th, 2024

Dollarisation, inflationary pressures choke Bridgefort shares

ByEconomic Times

Apr 21, 2023

By ETimes

Bridgefort Capital, formerly MedTech Holdings, says the operational environment remained challenging and unpredictably structured in 2022, making shares unappealing to the market.

This comes as business activities continue to be significantly restricted by the difficult macroeconomic climate and frequent policy changes.

As a result of the official change in the name of the company, the shares currently trading on the Zimbabwe Stock Exchange (ZSE) will have new abbreviations.

These are BFCA (BridgeFort Capital Limited Class A—CConsumer Goods) and BFCB (BridgeFort Capital Limited Class B).

“With increasing dollarisation and continued high inflation, the ability of BridgeFort to conclude transactions with shares listed on the ZSE has been limited as such shares are seen as unattractive in this environment,” Bridgefort Capital said in a statement accompanying the results for the year ended 31 December 2022.

“The total comprehensive loss for the year amounted to $1.44 billion, almost entirely made up of fair value losses due to the reduction in the real values of the class A and B shares on the ZSE.”

The Class A portfolio primarily includes 50.1% of Zvemvura Trading (Private) Limited, trading as MedTech Distribution, and Chicago Cosmetics (Private) Limited, a 51% subsidiary of MedTech Distribution. Zvemvura Trading (Private) Limited together with its subsidiary companies are jointly referred to below as “MedTech”.

BFCA share price as of right now is $10.00. On the ZSE, BFCA finished its final trading day on Monday, April 17, 2023, at 10.00 ZWL per share, a gain of 8.1% over its previous closing price of 9.25 ZWL.

BridgeFort Capital had a share price of 8.00 ZWL at the start of the year and it has since increased by 25%, placing it 32nd on the ZSE in terms of year-to-date performance. As the 24th best stock on ZSE, BFCA’s stock has gained 8% over the last four weeks, so investors may be positive about the company.

The 40th most traded stock on the ZSE during the past three months (Jan. 17–Apr. 19, 2023) is BridgeFort Capital. Over the time, BFCA has exchanged an average of 513 shares per session, totaling 32,300 shares worth ZWL 294,070. For the same time, a volume high of 25,400 was reached on March 21. The ZSE activity of BridgeFort Capital over the previous 10 trading days is shown in the table below.

BFCB’s share price as of right now is $29.30. On the ZSE, BFCB concluded its final trading day on Wednesday, April 12, 2023, at 29.30 ZWL per share. BridgeFort Capital Class B, whose share price was 26.00 ZWL at the start of the year, has subsequently increased 12.7% on that basis, placing it 39th on the ZSE in terms of year-to-date performance.

Between January 17 and April 19, 2023, BridgeFort Capital Class B was the 44th-most actively traded stock on the ZSE. Over the time, BFCB has exchanged an average of 11 shares per session, totaling 700 shares for $20,510. On March 9th for the same session, a volume high of 300 was attained – Harare

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