• Tue. Apr 23rd, 2024

ZSE back in green as Dr Mangudya’s ratings fall

ByEconomic Times

Oct 20, 2022

By ETimes

The Zimbabwe Stock Exchange on Wednesday ended bullish to halt a one-day negative outing.

Today’s performance comes as the Central Banker Report Cards 2022 gave the Reserve Bank of Zimbabwe’s (RBZ) Governor, Dr John Mangudya, a D+ grade, making him one of the lowest-ranked in the Middle East and Africa Table.

Published annually since 1994, the report gives grades to central bank governors, taking into account success in areas including inflation control, economic growth goals, currency stability, and interest rate management.

The report’s grades range from A-to-F scales. An “A” grade rates an excellent performance, while an “F” rating represents a miserable failure.

In 2021, Mangudya had a C-grade.

“After a brief lull, Zimbabwe’s economy is back in crisis mode; and Governor John Mangudya and the RBZ have their hands full dealing with hyperinflation, free-falling local currency, a chaotic forex market and a banking sector in which loan facilities are abused by business,” reads the report.

In order to combat inflation and speculative borrowing, the RBZ has turned to drastic and occasionally unconventional measures, such as the introduction of gold coins that are intended to absorb liquidity and serve as a store of value in a nation where the local currency is theoretically worthless. Even further, RBZ temporarily stopped bank lending.
Global Finance gave the South African central bank governor an A for 2022.

At the close of trade, the mainstream ZSE All Share Index gained 1.25% to close at 14,066.62 points. The market cap increased by $2.01 billion to $1.7 trillion.

Seventeen companies saw gains in their share prices, while nine closed negative.

Gains in CFI and Simbisa lifted the Top 10 Index as it was 1.55% up to 8,332.88 points.

The gainers’ chart was led by CFI as it closed at $411.25, a 15% gain. Simbisa rose 9.37% to $197.00.

The Medium Cap Index recovered 0.63% to close at 30,684.80 points. ZBFH increased 14.96% to $106.40.FMP added 13.05% to make $6.86. Zimplow gained 10.45% to $14.49.

On the flip side, Mash Holdings fell 4.76% to $7.53. Starafrica lost 3.46% to $1.70 and First Capital Bank was down 3.18% to end at $9.02.
The Small Cap Index was off 1.30% to 478,905.34 points. Atop the losers’ chart was GB Holdings with a 6.90% drop to $1.84 per share. Zimpapers lost 3.58% of its share price, dropping to $2.89 at the close of trading.

Turnover rose 236.97% to $387.6 million.
With regards to the value of traded stocks, Econet took the lead among the top five performers, flanked by Innscor, Simbisa, NatFoods and Delta.

In the derivatives market, the Datvest Modified Consumer Staples ETF gained 0.03% to $1.7330 while the OM ZSE Top-10 ETF rose 0.77% to $5.2748.

On the downside, the Morgan & Co Made in Zim lost 0.05% to $1.1500 while the Morgan & Co Multi-Sector was lower by 0.51% to $23.4945. Cass Saddle Agric ETF was flat at $2.0000.
Oil prices rose slightly on Wednesday amid plenty of caution as bullish signals such as falling US crude stocks and a generally undersupplied market were countered by bearish factors such as uncertain Chinese demand growth and falling gas prices.

Brent crude futures for December settlement rose US$60c, or 0,7%, to US$90.63 a barrel as Brent hit a low of US$89.32.

US West Texas Intermediate crude for November delivery, expiring on Thursday, was at US$83.59 a barrel, up US$77c, or 0,9%. The December contract was at US$82.73, up US$66c, or 0,8%.

The gold market is not seeing much reaction to the latest economic data as it sees solid technical selling pressure. December gold futures last traded at US$1 638.40 an ounce, down 1% on the day – Harare

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