ZSE closed the week on the weak side driven by Blue chip counters

Tapiwanashe Mangwiro

The Zimbabwe Stock Exchange (ZSE) experienced a downturn this past week, with the All-Share Index closing 3,14 percent lower than the prior week.

The index’s decline was largely attributed to losses in blue-chip stocks, with CBZ, EcoCash, Econet and Delta posting significant losses.

In total, 15 counters closed in the red, while only eight gained.

Among the gainers were First Mutual Properties (FMP), which rose 5.58 percent to ZiGc 80.13, Tanganda up 3,18 percent to ZiGc 419.95, and Star Africa, which gained 2,73 percent to close at ZiGc 2.16.

The week saw a substantial reduction in market turnover, which fell 74 percent to ZiG 56.90 million, down from the prior week’s ZiG 222.97 million.

Delta, Econet, and ZHL were the primary drivers, with Delta leading at ZiG 34.78 million, followed by Econet at ZiG 6.36 million and ZHL at ZiG 3.68 million. Exchange-Traded Funds (ETFs) saw mixed performance, with Old Mutual being the only ETF to record losses, closing at ZiGc 24.99 compared to ZiGc 26.00 on November 1.

The Datvest Modified Consumer Staples (MCS), Morgan & Co Made in Zim, and Morgan & Co Multi-Sector ETFs all posted gains, while Cass Saddle Agric ETF closed unchanged.

On the Victoria Falls Stock Exchange (VFEX), the All-Share Index gained 2,25 percent, moving up from 102.82 points to 105.13. This gain was driven by advances in seven out of the 14 listed active counters.

Zimplow led the charge with a 15,33 percent increase to US 1.58 cents, followed by Edgars, which climbed 13,73 percent, and Axia, up 10,08 percent.

In corporate news, Delta Beverages reported strong half-year financial results, with USD revenue growth of 11 percent to USD 389 million.

The company recorded a profit before tax (PBT) of USD 55.8 million and net income of USD 41 million, up from USD 22.13 million in the previous period. Delta’s board also announced an interim dividend of US 1.00 cent per share, to be distributed on December 10, 2024.

Looking ahead, a cautious sentiment is expected to prevail on the ZSE, where “low liquidity is likely to keep the market trading lower,” according to Platinum Securities.

For the VFEX, activity is expected to remain subdued, as low investor participation continues to be a hurdle amid competing USD-denominated assets and limited foreign interest.