• Mon. Apr 15th, 2024

IH says fundamentals point to a bullish stock market in 2023

ByEconomic Times

Jan 31, 2023

…as mid-tier caps lift market index

By ETimes

The Zimbabwe Stock Exchange opened the week on a positive note, extending its bullish sentiment to three consecutive trading sessions.

Today’s performance coincides with the release of the IH Zimbabwe 2023 Equity Strategy; An Economy at Crossroads report by the advisory firm IH Securities.

“While fundamentals speak to a bullish stock market in 2023, in 2022 we observed a dislocation between fundamentals and the ZSE stock market performance,” IH stated.

“Tight monetary policy changes coupled with regulation of the bourse resulted in the exchange registering a negative 59% real return in 2022 (smoothened for Simbisa and National Foods).”

IH said rapid policy changes will continue to pose a serious threat to future stock market performance.

“Also, predicting policy changes in 2023 seems challenging, if not impossible. However, historical data shows money supply registers an uptick during of an election year,” it said.

“The uncertainty around money supply developments in 2023 propels us to lean more towards defensive stocks that have strong dividend policies in case capital gains remain subdued.”

At the close of trading, the mainstream ZSE All-Share Index gained 2.19% to close at 22,628.32 points. On the price movement chart, market sentiment was positive as 19 stocks appreciated while seven others comprised the losers’ chart.

The Top 10 Index edged up 1.58% to close at 13,827.82 points.

The Medium Cap Index gained the most, up 3.80% to finish at 46,874.46 points.

Hippo recorded the highest price gain of 15.00% to close at $370.35 while SeedCo Limited followed with a gain of 14.98% to close at $189.75. Dairibord rose by 14.97% to finish at $52.05. Proplastics garnered 14.00% to settle at $51.30. Completing the list was GetBucks which added 9.75% to close at $21.95.

On the other hand, NMB led the losers’ chart by 10.51%, to close at $36.40. TSL followed with a decline of 1.57% to close at $50.20, while ZHL fell 0.73% to close at $6.80. Ariston was 0.66% lower at $4.75, rounding out the top five losers.

The Small Cap Index was off 0.21% to close at 473,763.22 points. GB Holdings declined by 2.87% to close at $1.74.  

Market turnover declined 69.69% to $180.78 million.

Transactions in the shares of Axia topped the activity chart with 973,800 shares valued at $96,420,130. Delta followed with 56,700 shares worth $22,908,780.

Market capitalisation increased by 1.66% to $2.40 trillion.

On the ETF market, Old Mutual ZSE TOP 10 was up $0.3886 to $7.8908.

Cass Saddle Agriculture ETF and Morgan & Co Multi Sector ETF remained flat at $2.2500 and 24.5000 respectively.

Morgan & Co Made In Zimbabwe ETF shed $0.0039 to $1.2961 while Datvest Modified Consumer Staples ETF retreated by $0.0071 to $1.4904.

TIGERE REIT remained flat at $50.6200 – Harare

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