• Sun. May 26th, 2024

ZSE lukewarm on ZiG currency debut

By ETimes

The past week marked the beginning of the usage of the Zimbabwe Gold (ZiG) currency in Zimbabwe after the Reserve Bank of Zimbabwe’s 2024 Monetary Policy which phased out the Zimbabwe Dollar (ZWL) from the market.
As a result of this development, the ZSE rebased its Indices to 100 points and stock prices were adjusted at the appropriate ZWL/ZiG exchange rate. Due to this currency transition, business activity as well as stock market participation was very low as banks were converting ZWL balances to ZiG balances and during that period, local transactions were restricted.
During the week under review, the ZSE All Share Index advanced by 0,39% to 100.39 points supported by 8 risers against 3 fallers.
Total market turnover for the week was ZiG117,978 led by Delta which saw trades valued at ZiG112,338.50.
On the USD denominated VFEX All-Share Index was up by 1.26% from 97.54 points to 98.77 points on the back of gains in counters such as Edgars, Bindura and Padenga.
Losses were recorded in 3 out of the 9 counters that were active during the week. African Sun led the losers after falling by 1.67% to US2.95.
Masimba Holdings’ financial results for the year ended December 31, 2023 showing an 8% revenue growth from US$49,8 million to US$53,8 million. The growth in revenue volumes was attributable to a strong and firm order book at the beginning of the year.
However, Masimba said growth declined in the fourth quarter as a conservative approach was taken by the group to align work execution in line with clients’ payment patterns.
Operating profit amounted to US$8,23 million compared to US$13,3 million and no dividend was declared for the period.
During this week, securities company Platinum Research said, “In the coming week we may observe mixed trading activity on the ZSE as the market gets acclimatised to the usage of the ZiG as the currency.
“On the VFEX, trading activity is expected to remain subdued on the back of low levels of investor participation on the VFEX arising from competing demand from numerous USD denominated assets and low foreign investor participation.

By ETimes

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