• Wed. Jun 12th, 2024

Gains at week opening for ZSE

ByEconomic Times

Oct 11, 2022

By ETimes

The Zimbabwe Stock Exchange (ZSE) recorded was back to winning ways when it recorded gains on Monday after a week of losses.

The bourse broke the five session of losses with a gain of 1,30 percent for the All Share Index to 13 239.34 leaving it with a year to date gain of 22,33 percent. Gains were driven by the heavyweight stocks as the Top 10 Index gained 1,85 percent in the session to close the day at 7 827.60.

On the economic front, FBC Securities said the country might be entering a recession which will affect the revised growth target set by the Treasury in its mid-year budget review.

FBC securities said, “Locally, we believe positive domestic economic growth remains a possibility given the positive developments in the mining and tourism sectors. Growth may however be below the 4.6 percent projection owing to restrictive factors such as the currency crisis, soaring inflation, liquidity constraints, policy missteps and perennial power shortages.

The rapid interest rate hikes are expected to have consequences on the rate of economic growth in the current year as well as next year with a global recession seeming more likely.

“We also note the upward revision of interest rates, increasing the cost of borrowing, as a limiting factor to desired growth projections as it weighs down aggregate demand,” they said.

Delta led the gainers as it added 9,57 percent on Monday to recover to $198.38 whilst the other top gainers were from the mid cap stocks.

Zimre Holdings was up 7,43 percent to $4.96 as the properties firm Mashonaland Holdings surged to $7.48 after it gained 6,99 percent. Natpak was among the gainers as it put on 5,56 percent in the session to end the day at $9.50.

Small Cap index was down 0,50 percent to 493 291.96 but Unifreight saw its stock price rise 5,26 percent to end the day at $50.00.

Trading in the negative was Bridgefort Capital class A shares which lost 5,53 percent to close at $7.00. Fellow Small Cap constituents StarAfrica and Turnall were down 2,80 percent and 2,79 percent to close at $1.58 and $3.40 respectively.

Heavyweight losses were led by telecoms giant Econet which lost 2,49 percent leaving it trading at $82.58 per share, which is 2,84 percent in the negative year to date.

On the values traded, Ecocash led on turnover at $537 million, as Econet saw $496 million change hands in the session. Beverage maker Delta saw turnover of $127 million as Simbisa and OK Zimbabwe recorded turnover of $11,8 million and $8,8 million respectively.

Gold prices fell to a one-week low on Monday, as solid US jobs data added to worries that the US Federal Reserve would charge ahead with aggressive interest rate hikes to tame inflation.

Spot gold was down 0,4 percent at US$1 687.79 per ounce, after hitting its lowest since October 3, 2022 at US$1 686.45. US gold futures were down 0,8 percent at $1 695.60 per ounce.

The dollar index was steady after touching a one-week high on Friday. A stronger greenback makes gold costlier for buyers holding other currencies.

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Spot silver was down 2 percent at US$19.71 per ounce after hitting a one-week low. Platinum fell 0,7 percent to US$905.51, while palladium inched 0,1 percent higher to US$2 183.99.

Oil prices fell, snapping five days of gains, as investors took profits after a report on slowing economic activity in China, the world’s biggest crude importer, reignited concerns about falling global fuel demand.

Brent crude futures for December settlement fell by as much as 1,1 percent, and was last down US$0.85, or 0,9 percent, at US$97.07 a barrel.

West Texas Intermediate crude for November delivery declined by as much as 1,1 percent and was at US$91.84 a barrel, down US$0.80, or 0,9 percent.- Harare

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