Market closes October in the red, as currency volatility bites

Tapiwanashe Mangwiro

The Zimbabwe Stock Exchange (ZSE) All Share Index closed lower, losing 3.20 points or 1.09 percent to settle at 289.12 points.

This drop was driven by declines in several major stocks, signaling mixed performance across sectors.

Among the companies trading in the red, Delta Corporation Limited was the biggest loser, shedding ZiG151.8790c to close at ZiG2003.6308c.

This decline reflects Delta’s ongoing challenges in a fluctuating economic environment.

OK Zimbabwe Limited also saw its stock slip, losing ZiG3.4202c to end at ZiG94.5798c, likely a reaction to subdued consumer demand in the retail sector.

Meanwhile, SeedCo Limited decreased by ZiG2.8339c to ZiG524.9500c, while Econet Wireless Limited, one of the largest telecom providers, recorded a decrease of ZiG0.9153c to finish at ZiG481.0995c.

Starafricacorporation Limited, a producer in the sugar sector, lost ZiG0.0973c, bringing its share price down to ZiG2.1643c, possibly affected by volatility in raw material costs and market competition.

In contrast, some stocks registered gains, balancing the market performance to some extent.

British American Tobacco was the top gainer, adding a significant ZiG1500.0000c to close at ZiG12000.0000c, as investor confidence remains high in the tobacco sector’s profitability.

Tanganda Tea Company Limited also performed well, gaining ZiG45.9449c to ZiG354.1449c, as favourable agricultural production continues to bolster the company’s outlook.

Mashonaland Holdings Limited added ZiG25.0000c, closing at ZiG220.2500c, while Nampak Zimbabwe Limited, a packaging company, increased by ZiG19.0000c to ZiG150.0000c, reflecting optimism around its prospects in the manufacturing and packaging sectors.

First Mutual Holdings Limited also posted gains, climbing ZiG10.1310c to reach ZiG450.0000c, likely benefiting from positive sentiment in the financial services sector.

In corporate developments, National Foods Holdings Limited announced its intention to delist from the Victoria Falls Stock Exchange (VFEX).

The VFEX, a subsidiary of the ZSE, was established in 2020 to support the launch of the Offshore Financial Services Centre (OFSC) in the Victoria Falls Special Economic Zone.

In a statement to shareholders, National Foods’ legal counsel, Leigh C. Howes, confirmed that processes are underway to finalise the delisting.

Howes indicated that the board of directors is exploring the strategic rationale behind the decision and urged shareholders to exercise caution while trading the company’s shares.

Further details are expected to be disclosed once regulatory processes are complete, providing shareholders with insight into the company’s future plans.

Overall, while the ZSE All Share Index showed a marginal decline, select sectors displayed resilience, with gains in tobacco, agriculture and manufacturing offsetting losses in consumer goods and telecoms.

The market awaits further clarity on National Foods’ strategic direction, which may influence future investor sentiment on the VFEX.