For the third consecutive session, the Zimbabwe Stock Exchange (ZSE) on Thursday maintained its bull run, as the market capitalisation gained $1.73 billion despite the economy growing less than the 4.6% forecast.
In September 2022, the International Monetary Fund said the country’s gross domestic product growth will decline by about half of its 2021 levels, to around 3.5% in 2022.
“Due to the base effect, global and domestic developments, particularly the impact of high inflation and resultant stabilisation measures on credit and demand, the economy is now projected to grow by 4% in 2022, a further downward revision from the mid-year projection of 4.6%,” said Finance Minister Mthuli Ncube while presenting 2023 national budget.
Previously the treasury had projected an economic growth of 5.5% backed by higher output in mining, manufacturing, agriculture, construction as well as the accommodation and food services sector.
“Growth during 2022 is mainly expected from mining, construction and accommodation and food services sectors.”
The economy is now projected to grow by 3.8% in 2023, compared to the NDS1 target of not less than 5%, owing to the uncertain global economic outlook and potential domestic adverse factors.
At the close of trading, the mainstream ZSE All Share Index gained 0.11% to 14,115.89 points. Accordingly, investors gained $1.7 billion in value as the market capitalisation went up to $1.69 trillion.
However, market sentiment, as measured by market breadth, was negative, as 6 stocks gained relative to 14 losers.
The Top 10 Index gained the most, up 0.43% to close at 8,118.07 points. Among the heavyweights, Delta gained 1.42% to $217.53. Innscor followed with a gain of 0.63% to close at $321.23.
Market turnover increased by 420.08% to $690.23 million. Transactions in the shares of telecoms giant Econet topped the activity chart with 2.87 million shares valued at $200.23 million. But the counter plunged 0.15% to $69.61.
Mash Holdings topped the gainers list once again.The counter recorded the highest price gain of 14.35% to close at $11.80. FMP followed with a gain of 0.48% to close at $10.55, while Axia went up by 0.16% to finish at $63.08.
Logistics firm Unifreight led laggards, declining by 13.41% to close at $45.02. Starafrica shed 6.77% to end at $1.71. Nampak fell to $8.05, losing 5.29%. Hospitality group RTG slumped to $7.50, recording a 4.99% depreciation. Banking counter NMB closed at $24.00, going down by 4.01%.
The losses saw the Medium Cap fall by 0.51% to close at 32,758.76 points.
The Small Cap Index suffered the most, falling 0.64% to 505,122.94 points.
The Datvest Modified Consumer Staples ETF was up 0.42% to close at $1.7071. In the same vein, the Morgan & Co Made in Zimbabwe garnered 0.83% to settle at $1.2100. The Cass Saddle Agriculture ETF was flat at $2.0000.
On the flip side, the Morgan & Co Multi Sector was down 9.09% to $20.0000 while the OM ZSE Top-10 ETF fell 1.77% to close at $5.6000 –Harare