HARARE – CBZ Holdings shares closed flat on Tuesday after the company announced that it will take a large ownership position in First Mutual Holdings Limited after the bought shares are transferred.
CBZHL signed a Share Purchase and Sale Agreement in October 2021, according to which the National Social Security Authority (NSSA) sold 31.22% of its shares in First Mutual Holdings Limited to CBZHL.
Shareholders of CBZHL approved the transaction in an extraordinary general meeting on January 31, 2022.
“All the required approvals have now been obtained and administrative aspects of the Agreement have been concluded and upon transfer of the shares purchased, CBZ Holdings Limited will become a significant shareholder of First Mutual Holdings Limited,” reads a joint press statement by CBZHL and the NSSA.
CBZHL shares did not trade at $641.56.
At a press briefing held mid-morning, CBZHL said the acquisition of a 36% stake in FMHL will enable it to reach the size necessary to compete against larger corporations in the country and the region.
The Zimbabwe Stock Exchange (ZSE) reversed losses to close in an upbeat mood, following gains in heavily capitalised and mid-tier stocks as market capitalisation increased by $111,03 billion.
At the close of trading, market capitalisation of listed equities increased by 1.14% to close at $9.81 trillion from $9.7 trillion reported the previous day.
Market breadth was positive, as there were 8 gainers against 5 laggards.
The ZSE All Share Index, which measures the performance of quoted companies, gained 1,01 percent to close at 122,959.61 points.
The Top 10 Index was up 1.43% to close at 56,857.63 points.
The Medium Cap Index rose marginally by 0.29% to 452,566.92 points, while the Small Cap Index remained flat at 2,320,368.91 points.
Brickmaker Willdale led gainers, up 63.96% to close at $5.50. Retail giant OK Zimbabwe jumped 6.34% to settle at $140,11.
ZBFH went up 5.67% to $63.40. Starafrica rose to $5.57, notching up 3.07% in the process. Econet added 2.55% to finish at $512.81.
EcoCash was the worst-performing stock, declining by 2.64% to close at $143.77. Hippo shed 0.91% to close at $1,816.52.
SeedCo Limited fell to $1,043.08 losing 0.01%.
BAT and Tanganda was flat at $17,925.46 and $999.98 respectively.
Cass Saddle Agriculture ETF, Datvest Modified Consumer Staples ETF and Morgan & Co Made In Zimbabwe ETF was flat at $7.2500, $5.700 and $6.3200 in that order.
Morgan & Co Multisector ETF and Old Mutual ZSE Top 10 ETF did not trade at $160.9014 and $21.5000 respectively.
Tigere REIT was off 1.17 percent to close at $201.5950.