Blue – Chips drive Monday market recovery
The Zimbabwe Stock Exchange (ZSE) All Share Index started the week on a positive note, advancing by 1.68 points or 0,62 percent to close at 272.13 points.
Gains in blue-chip stocks led the market higher, with British American Tobacco Zimbabwe topping the performance chart, surging by ZiG 1,437.0370c to ZiG 11,500.0000c.
Delta Corporation Limited added ZiG 24.5452c to close at ZiG 1,954.4359c, continuing its upward momentum.
Econet Wireless Zimbabwe posted a modest gain of ZiG 3.3845c to ZiG 372.6972c. Turnall Holdings Limited advanced by ZiG 0.5000c to end at ZiG 6.5000c, while NMB Holdings Limited edged up ZiG 0.0259 to close at ZiG 370.0266.
On the downside, property sector counter First Mutual Properties Limited fell by ZiG 11.2500c to ZiG 75.0000c, marking the sharpest decline of the day.
Zimre Holdings Limited also retreated, shedding ZiG 2.0000c to end at ZiG 45.0000c.
Meikles Limited eased by ZiG 1.0223c to ZiG 414.0466c, while Tanganda Tea Company Limited slipped ZiG 1.0000c to close at ZiG 350.0000c. Star Africa Corporation Limited declined by ZiG 0.1542c to settle at ZiG 2.316.
In corporate news, Tanganda Tea Company Limited, has reaffirmed its plans to transition its listing from the ZSE to the Victoria Falls Stock Exchange (VFEX).
In a statement issued on Monday, the company’s directors revealed that discussions regarding the migration are ongoing and are expected to lead to an Extraordinary General Meeting. Shareholders will be called upon to deliberate and approve the proposed migration and a subsequent capital raise through a Renounceable Rights Offer.
The company also urged caution among shareholders.
“Shareholders are advised to continue exercising caution when dealing in the company’s shares until circulars to shareholders that are being finalised are published,” the directors noted.
The migration to the VFEX is expected to offer the company access to U.S. dollar-based trading, which could enhance its ability to raise capital and expand its operations amidst Zimbabwe’s challenging economic environment.
Commenting on the market performance, analyst Sean Kaduwo noted that tight liquidity in the economy remains a significant factor influencing market movements.
“The market is reacting to the constrained liquidity environment and we expect these fluctuations to persist as investors navigate a challenging economic landscape,” Kaduwo said.
As investors focus on key economic indicators and liquidity trends, trading activity is likely to remain mixed in the near term.-ebsinessweekl
