Equity markets record weekly losses on subdued activity

The Zimbabwe Stock Exchange (ZSE) faced a challenging week, with the All-Share Index declining by 0,93 percent to close at 206.01 points.
Out of the 24 counters, only four registered gains while 20 were in the negative.
The weekly market turnover amounted to ZiG 50,16 million, with Delta Corporation ZiG 18,01m, Econet ZiG 13,13m, and SeedCo ZiG 4,39m emerging as the top contributors.
On the exchange-traded funds (ETFs), the Morgan & Co Multi-Sector ETF recorded a notable 4,52 percent decline, settling at ZiGc 190.00.
The Victoria Falls Exchange (VFEX) mirrored this subdued performance, with the All-Share Index dropping by 2.15 percent.
Key losses included SeedCo International, which lost 19,92 percent, Axia was down 10,93 percent, and Simbisa eased 7,55 percent, while Padenga gained 18,66 percent and African Sun, which added 5,82 percent posted gains.
Delta Corporation released its third quarter trading update for the quarter ended December 31, 2024, reporting a 7 percent revenue growth for the nine months.
The performance was supported by mixed volume trends, with sparkling beverages and sorghum beer volumes declining by 1 percent and 2 percent, respectively. The company remains entangled in a tax dispute with ZIMRA, contesting an additional US$73 million in assessments for the 2019–2022 period.
Gold prices climbed by 2,53 percent to US$2 771.40 per ounce, driven by safe-haven demand amid global economic uncertainty. Crude oil prices, however, declined by 4,01 percent to US$77.55 per barrel due to concerns over slowing global demand.
Investor participation on the ZSE is expected to improve slightly in the coming week, though significant price gains are unlikely due to persistent low buying momentum.
On the VFEX, activity is projected to remain subdued as USD-denominated assets continue to compete for investor interest.
Platinum Securities noted: “The market is grappling with subdued investor confidence, but we anticipate a gradual return of activity as macroeconomic indicators stabilise. However, short-term gains are likely to be tempered by external and domestic pressures.”-ebsinessweekl

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