admin
Business Writer
The Zimbabwe Stock Exchange closed bullish for the week to 19 June 2020 on the back of gains in mid-tier stocks led by hotel operator Rainbow Tourism Group.
The All Share Index was up 3,26 percent for the day and 11,5 percent for the week. It closed at a record 1,713.63 level.
Gains were also recorded in the market’s heavyweight with the ZSE Top 10 Index closing 3,16 percent firm at 1,221.93.
The Medium Cap Index was, however, the day’s top performer up 3,61 percent to 3,049.98.
Market watchers say the rally is driven by investors looking at hedging against hyperinflation and a depreciating local currency.
Inflation hit 786 percent at the last count in May, while the exchange rate has fallen to 90 to the US dollar from around 25 at the beginning of the year.
More than $1,2 billion has found its way into the market since the start of the year. Since January that figure is upwards of $3 billion. This is more than the $2 billion invested the whole of last year.
This was after RTG gained 19,96 percent to 148,75 cents. The Hotel Group recently introduced online grocery service under its integrated Gateway Stream App as part of measures to stay afloat in the wake of the adverse impact of Covid-19.
Through its Gateway Stream, RTG expects to have a softer landing from the adverse impact of the Covid-19 pandemic on its business. Globally there has been a surge in internet-based online transaction rates as people shy away from physical normal daily shopping patterns in compliance with national lockdowns.
“Everyone wants a safe, reliable and convenient access to their grocery needs. We therefore see a huge opportunity in this space,” RTG chief executive officer, Tendai Madziwanyika, said about the new initiative.
Business that offer online services have been gaining traction over the years and the new normal brought about by Covid-19 will accelerate their progression. Global stocks like Alibaba and Amazon come into mind.
FBC Holdings came second with a 19,55 percent gain. The counter has been one of the top performers in recent weeks. This week alone the company gained 159.59 percent to take its year-to-date gain to 1,792.7 percent.
Interestingly, its directors have also been buying into the company.
CEO John Mushayavanhu and deputy Trynos Kufazvinei upped their stake in the company over the same period.
On June 4, FBC’s chief executive Mushayavanhu – through Tirent Investments (Private) Limited – purchased 1 925 000 shares in the company for $4 427 500.
Mushayavanhu has an indirect beneficial interest in Tirent Investments (Private) Limited. Following the transaction, the CEO now has a holding of 42 325 000 shares in FBC Holdings.
Kufazvinei bought 1 million shares worth $1 410 000 on 18 May, then 5 783 077 shares worth $9 831 230.90 on May 22. And on June 4, he purchased – through Dinkrain Investments (Private) Limited – 1 069 000 to the tune of $2 458 700.
The market was, however, not short of losers with small cap stock Medtech down 7.98 percent and Willdale down 3,4 percent among the losers. This resulted in a marginal loss for the Small Cap Index which shed off 0,06 percent.
Friday’s trades were also accompanied by good volumes with the value of trades closer to $60 million.
Econet got the bulk of the invested funds after $33,6 million worth of shares changed hands. The counter, however, closed 0,54 percent lower at 839,93 cents.
Innscor got $12,3 million, Old Mutual $5,1 million and this year’s top performing stock CBZ Holdings, got $4,3 million. The banking group is up 4,757.2 percent since the beginning of the year.
Online Reporter