After 16 consecutive sessions of gains, the market has seen a circuit breaker after it closed in the negative. In what might be a start of a downward trend in the market due to profit taking, the market lost 0.64% to close at 1 505.03.
With the market termed to be a hedge against inflation and currency depreciation, the Top 10 Index saw gains of 222.02% in the previous month as the ZWL lost only 65.92% from May to date. Traders might feel that this is the right time to buy forex as a hedge to inflation as they exit the heavyweight stocks at a gain. As a result the Top 10 Index closed 2.19% lower at 1 278.99.
Losses were recorded in Innscor which saw a $44.6m penalty for anti-competition activities due to its acquisition of Profeeds. The conglomerate closed 8.08% down to 2596.79c. Cassava was down 4.30% to 950.99c as FMP continues on the downside closing 3.89% lower at 173.00c.
Delta which has been one of the biggest gainers in the last 10 days gaining 115% was down 3.36% to 2500.56c as BAT which is a hedge stock due to the behavioral nature of their products was down 2.05% to 14300.00c. Heavyweight gains were in sister companies SeedCo and SeedCo International which have both gained 174% and 169% in the last 10 sessions. SeedCo International added 19.90% to 2470.00c with SeedCo Limited was up 10.04% to 1953.14c.
However the Mid Caps and the Small Cap Indices closed in the positive as they continued with their bull run gaining 2.50% and 0.72% to 2 013.01 and 4 607.92 respectively.
The gains were led by African Sun which is trading under a cautionary message was up 19.99% to 120.00c a new high. Cement manufacturer PPC closed 19.31% firmer to 597.55c as Dawn which wants to be assimilated back into Afsun saw its shares trade 15.74% higher at 50.00c. Mid Cap stock Zimplow capped the top five gainers of the session as it closed at 2.18c after a 13.54% session gain.