Bulls dominate ZSE trades
Bulls dominated trades on the Zimbabwe Stock Exchange (ZSE) offsetting the losses that were incurred during the first two weeks of the year.
This saw all the indicators closing the week to Wednesday in the positive. Market watchers expect stocks to maintain the upward trend in the year despite the economic challenges as other investment classes such as bonds and bank deposits in local dollars remain unattractive.
At a global level, economic volatility and uncertainties still remain as the second wave of the Covid-19 hit, following a year in which the pandemic crashed markets especially in February and March. But prospects of a vaccine and measures implemented by various economies are expected to stimulate growth.
During the week under review, the primary indicator, the ZSE All Share Index rose 12 percent to 2 769 points on the back of gains recorded across board.
The ZSE Top 10 Index paced the fastest with a 15,9 percent increase to close the week at 1 745 points while the ZSE Top 15 Index put on 14,8 percent to 2 051 points.
At 5 858 points, the Medium Cap was 7,6 percent above prior week level while the Small Cap advanced 2 percent to 11 327 points.
Total market value rose 12,4 percent to $332,8 billion compared to $295,9 billion recorded last week, reflective of gains recorded across board.
Specialty retail and distribution group, Axia, headlined risers for the week with a 52 percent increase to close at $11,45 from $7,53 during the prior week.
Property firm, Dawn, added 34 percent of value to close at 47,61 cents from prior week’s 35,39 cents.
During Wednesday trades, a block trade of circa 2,24 billion shares worth $1,08 billion in Dawn highlighted that day’s session which propelled both volume and value aggregates higher as it claimed 99 percent of the firmer and 91 percent of the latter.
The markets biggest counter by market value, CBZ rose 30 percent to $90 while TSL added 28 percent to settle at $19,20.
Proplastics wrapped up the week’s top five gainers with a 27 percent increase to $11,05.
Other gains were recorded in retail giant, OK Zimbabwe which rose 25 percent to $10 while seed manufacturer ,Seed Co increased by 22 percent to $28,20.
Fast food group, Simbisa rose 21 percent to $12,10.
The market’s most expensive stock, BAT jumped 18 percent to $650 as the cigarette maker bounced back into the ZSE Top 10 index on seventh position with a market value of $13,4 billion.
Further gains were offset by losses in RioZim which fell 18 percent to $10,80 followed by spirits and wines maker, Afdis which backtracked 16 percent to $20.
The duo of Zimplow and Nampak eased 15 percent each to $4,20 and $2,19 respectively.
Property firm, Mashonaland Holdings retreated by 10 percent to 80,41 cents.
Other losses were seen in Art which retreated 8 percent to $3,99 while ZHL lost 7 percent to $2,80.
Banking firms, FCB and NMB decreased 1 percent each to $1,03 and $4 respectively. FMP remained unchanged at $4 as the property firm declared a $7 million dividend for its shareholders for the quarter to September 30, 2020.
RTG remained unchanged at $1,91 while Unifreight and Zimpapers remained flat at 22,3 cents and 98 cents respectively.–ebusinessweekly.co.zw
4Delta volumes suggest merrymaking last Christmas
Delta volumes suggest merrymaking last Christmas
Lager beer volumes declined 43 percent for the quarter and 46 percent for the nine months compared to the same period in the prior year.
Business Writer
Zimbabwe’s beverages giant, Delta Corporation, was able to sustain its viability and even grow volumes for the nine months to December 2020 despite operating under restrictions brought about by the Covid-19 pandemic.
The beverages giant’s local operations recorded significant volume growth against the comparable prior year despite operating in an environment characterised by the restriction of movements and social gatherings, closure of on-premise consumption outlets and prohibition of other commercial and social activities that were deemed to pose a risk of spreading Covid-19.
In a trading update, Delta said lager beer volume grew by 20 percent for the nine months to December 2020 compared to the same period last year. For the last reported three months, beer volume was up 48 percent.
Delta said the volume recovery is attributed to the competitive pricing and consistent product supply, benefiting from the injection of new returnable glass and fewer disruptions to production operations.
The sorghum beer volume despite growing by 29 percent in the three months to December 2020, still trailed prior year by 14 percent for the nine months.
However, there was improved market access following the relaxation of the lockdown measures during the last three months of
- “The sorghum beer category was negatively impacted by limited access to trade channels such as bottle stores and rural markets in the first half of the year,” Delta said.
Sparkling beverages volume grew by 42 percent for the nine months compared to prior year.
According to the company, this category has benefited from consistent product supply and competitive pricing.
“The sales mix has shifted towards take-home packs in response to the restrictions on gatherings.”
Associate African Distillers registered volume growth of 37 percent for the quarter and 25 percent for the nine months driven by the spirits and ready to drink ciders.
Delta’s performance was, however, not that great in the region with both its Zambian and South African entities recording volumes decline.
The volume at Natbrew Zambia declined by 2 percent for the quarter and is up 5 percent for the nine months.
Delta said the sorghum beer category has witnessed the resurgence of illegal trading in bulk beer, which trades at a discount to packaged product.
The South African entity, United National Breweries, recorded a year on year decline of 19 percent for the three months to December 2020 as South Africa has implemented very strict restrictions and bans on the sale and consumption of alcohol.
With authorities in regional markets invoking heightened levels of lockdowns in January 2021 in response to the upsurge in Covid-19 infections and emergence of more virulent strains, Delta expects business outturn for the fourth quarter to be subdued.
However, Delta expects the Zimbabwe operations to be an exception “as the economy could benefit from improved access to foreign currency and lower inflation”.-ebusinessweekly.c.zw
