…as Imara says investors see a local bourse as ‘closed for their business’
The Zimbabwe Stock Exchange (ZSE) strengthened 1.24% on Tuesday, occasioned by gains mostly in mid-tier stocks and select heavyweight gains.
Today’s performance comes as Imara Asset Management Zimbabwe indicated in its latest report that foreign investors believe that the country has a stock exchange that is not open for business.
According to the report, Old Mutual shares were suspended back in June 2020 when the government was panicked into closing the entire ZSE, once again in the mistaken belief that the ZSE was the cause of the devaluation of the ZWL rather than the ZWL monetary expansion.
Foreign investors still have money invested in these shares that they are not permitted to sell anywhere, not even in South Africa or the UK.
“Not surprisingly foreign investors see Zimbabwe as a country with a stock exchange that is closed for their business,” reads the report.
“Further they remain deeply suspicious of the VFEX.”
However, the report noted that they could find numerous opportunities throughout the rest of the world.
At the close of trade, the mainstream ZSE All Share Index was up 1.24% to 13,403.34 points. In the same vein, the Top 10 Index gained 1.28% to close at 7,927.47 points. Among the heavyweights, beverage maker Delta was up 3.51% to close at $205.35, Econet followed with 2.98% to finish at $85.04 and Innscor added 0.93% to close at $270.62.
On the flip side, EcoCash and Simbisa fell 0.53% apiece to end trade at $49.57 and $161.14 respectively.
ART topped the gainers’ chart, appreciating by 15% to close at $19.55. RioZim went up by 14.78% to $132.00. FBC rose to $49.99, notching up 11.10% in the process. ZBFH added 10% to end the trade at $66.00. GSK completed the top 5, climbing by 5.95% to $32.92. As a result, the Medium Cap Index gained 1.20% to close at 29,268.57 points.
First Capital Bank was the worst performing stock, declining by 10.12% to close at $9.00. TSL shed 6.75% to close at $37.30. African Sun fell to $17.09, losing 5.64%. SeedCo Limited declined 3.37% to $77.30. Ariston closed at $3.68, going down by 3.07%.
The Small Cap Index was flat at 493,292.78 points.
A total of 27,560,000 shares valued at $1,375,092,635 were traded in 306 deals.
Foreign investors were net sellers after disposing of $1,083,963,110 against buys of $10,764,040.
On the derivatives market, the Datvest ETFlost 0.25% to $1.7100, Morgan & Co Made In Zim ETF was off 5.98% to $1.2084, while the Morgan & Co Multi Sector ETF shed 6.75% to close at $25.1765. Also, the OML ETF eased 1.84% to $5.2000.
On the other hand, Cass Saddle Agriculture ETF added 5.45% to finish at $2.0000.
Gold prices extended their falls to a fifth session on Tuesday, pressured by gains in the dollar and treasury yields, while caution also set in ahead of inflation data due later this week.
Spot gold was down 0,2% at US$1 664.92 per ounce, after hitting its lowest level since October 3, 2022 earlier in the session. US gold futures dipped 0,1% to US$1 673.00 per ounce.
Spot silver fell 1% to US$19.46 per ounce, platinum dipped 0,5% to US$894.00 per ounce and palladium rose 0,5% to US$2 182.94 per ounce.
Oil prices slid on Tuesday, extending losses of nearly 2% in the previous session, as a stronger US dollar and a flare-up in Covid-19 cases in China raised concerns of slowing global demand.
Brent crude futures fell US$27c, or 0,3%, to US$95.92 a barrel, after falling US$1.73 in the previous session.
US West Texas Intermediate crude was at US$90.73 a barrel, down US$40c, or 0,4%, after losing US$1.51 in the previous session – Harare