Equity markets remain subdued at the beginning of the new week
The Zimbabwe Stock Exchange (ZSE) ended the week on a subdued note, with the All-Share Index declining by 0,67 percent to close at 206.53 points.
Market capitalisation fell to ZiG $61,48 billion, reflecting a 1,82 percent drop. Trading activity was notably weak, with turnover plunging 61,69 percent to ZiG $7,49 million. Hippo led the gainers, advancing 10 percent, while CBZ Holdings was the worst performer, shedding 11,08 percent.
Econet Wireless Zimbabwe was the most traded stock, contributing ZiG $5,19 million to the day’s total turnover. Its share price closed slightly lower at ZiG 296.85 cents, down 0,11 percent. The company’s strong performance in its third-quarter trading update underscored its resilience, with a 69 percent year-on-year revenue growth.
This growth was driven by a 42 percent surge in mobile network revenue and the integration of FinTech businesses from EcoCash. Increased voice and data usage, up 20 percent and 36 percent respectively, further supported these results. Econet remains optimistic about sustained demand for data and declared a dividend of US$0.36 cents per share for the quarter ended November 30, 2024.
On the Victoria Falls Stock Exchange (VFEX), the All-Share Index rose 1,7 percent to 103.80 points, driven by gains in African Sun of 5,56 percent and Padenga which added 18,85 percent.
However, overall activity on the VFEX remained muted, with trading volume limited to US$1 854.30. The market’s low liquidity reflects ongoing challenges, including subdued foreign investor participation and competition from other USD-denominated assets.
Looking ahead, analysts expect a slight improvement in trading activity as the month progresses. However, Platinum Securities cautioned that, “Tading on the VFEX will likely remain subdued due to persistent low investor participation and competing demand from alternative USD-denominated investment options.”
As markets navigate a challenging start to the year, investors remain watchful of macroeconomic trends and corporate earnings to gauge potential opportunities.-ebsinessweekl
