AfricaBusiness & FinanceZimbabwe

Heavyweight stocks starts week in red, despite overall market gains

By Almot Maqolo

The market closed in the positive to be fun the new week, despite losses in selected heavyweight stocks. Small Caps and Mid-Caps continue to provide buying opportunities with some still lagging behind despite the big rally last month.

Liquidity seems to have picked up once more as parallel market forex trading continues to be under heavy scrutiny. Turnover for the day was $99m that is US$3.96m at interbank rate and US$1.32m at a parallel rate of 75x. The market continues to push liquidity above the US$1m benchmark in both parallel and official market terms.

Meikles which was 10.21% up to 1499.99c pumped in $25.8m, with beverage maker Delta contributing $22m as it closed with gains of 2.25% to 2970.81c taking its market share to $38bn. Cassava Smartech which was on the losing end as it closed 4.86% lower at 903.84c had turnover of $10m. The company now ranked fourth on valuation terms has a market cap of $23bn as it slipped under Innscor which is now valued at $24bn.

Foreigners were net buyers as they splashed $31m in Delta $21.9m, Old Mutual $9.3m and PPC $4 960, and sold equity worth $2.2m in various companies on the market. Total market valuation closed at $bn in the process after 286 trades were completed.

The market closed with gains of 1.01% to 1 597.88 on the back of gains in Dawn which was up 20.00% to 72.00c, financial companies ZB and FBC added 20.00% and 19.96% to end the day at 636.00c and 330.50c respectively. Properties company ZPI added 20.00% in the session to end at 84.00c as Bindura capped the top five gainers after it closed 15.92% firmer at 179.37c.

The Small Cap index closed 6.22% higher at 5 151.25, as the Medium Cap was up 3.59% to 2 155.50. The Top 10 lost a marginal 0.46% to 1 348.96 as it erased some of the market day’s gains. Losses were recorded in hotelier African Sun which was down 5.38% to 121.98c leaving its market share below $2bn at $1.7bn, Zimplow which continues to struggle to gain momentum lost 2.56% to 210.02c. Top 10 companies Old Mutual and SeedCo International closed 1.84% and 0.81% weaker at 9118.74c and 2450.00c respectively.

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