ZSE gains amid mixed trading; Meikles halted over governance concerns

Tapiwanashe Mangwiro

The Zimbabwe Stock Exchange (ZSE) began the week on a positive note, with the All Share Index advancing by 1.98 points (0.73 percent) to close at 274.59 points on Monday.

Gains in several key counters drove the market higher, even as losses in some blue-chip stocks tempered the overall performance.

Leading the gainers was Afdis Distillers Limited, which surged by ZiG 121.1163c to close at ZiG 928.7000c.

Econet Wireless Zimbabwe Limited also posted a strong performance, rising by ZiG 45.0836c to finish at ZiG 385.3320c.

Fidelity Life Assurance Limited, gained ZiG 2.2500c to end at ZiG 100.0000c, while FBC Holdings Limited added ZiG 0.9914c to close at ZiG 1200.9914c.

Masimba Holdings Limited also edged higher, advancing ZiG 0.1591c to settle at ZiG 298.2500c.

However, the market was not without its losses.

British American Tobacco Limited led the decliners, shedding ZiG 100.0000c to close at ZiG 13100.0000c. Nampak Zimbabwe Limited fell by ZiG 16.8000c to end at ZiG 95.2000c, while CBZ Holdings Limited dropped ZiG 11.4098c to close at ZiG 1289.9538c.

OK Zimbabwe Limited eased by ZiG 11.1000c to settle at ZiG 63.1500c and Delta Corporation Limited lost ZiG 9.4887c to finish at ZiG 1999.6657c.

In a major development, trading in Meikles Limited shares was halted by the ZSE with immediate effect. The exchange cited corporate governance concerns as the reason for the halt and announced plans to seek regulatory approval for a suspension of the stock.

ZSE CEO Justin Bgoni explained: “The halt is to allow the ZSE to make a relevant application to the Securities and Exchange Commission of Zimbabwe (SECZim) to approve the suspension of trading of Meikles Limited on the ZSE. The application for the suspension by the ZSE is to allow Meikles Limited to address corporate governance concerns.”

During the halt, investors will not be able to trade Meikles Limited shares. The ZSE has promised to provide updates as the situation develops.

The market’s mixed performance on Monday reflects cautious optimism among investors, with strong interest in defensive and growth-oriented stocks counterbalanced by pressure on heavyweight counters. All eyes are now on the resolution of Meikles’ governance issues and the broader implications for investor sentiment.