Large cap counters drive local bourse’s All Share Index recovery

Zimbabwe Stock Exchange (ZSE) listed equities continued to recover during the month of January 2024, with the ZSE All Share Index gaining 157,43 percent to close at 542,744 points, mainly attributable to the gains made by the large-cap counters.

According to a Securities and Exchange Commission of Zimbabwe (SecZim) Grow Wealth Unit Trust report for January 2024, the Top 10 index also increased by 173,31 percent to close at 246,210 points.

“The largest company on the Zimbabwe Stock Exchange by market capitalisation, Delta, gained 179 percent during the month under review to close at $9,796,96,” reads the report.

During the month, there were significant gainers such as Meikles, Masimba, British American Tobacco (BAT), Seedco, Tanganda and Dairibord, which gained 438,35 percent, 267,28 percent, 210,76 percent, 201,78 percent, 197,69 percent, and 193,52 percent to settle at $1,246.97, $810.00, $13,100.00, $1,000.00, $957.00, and $606,99, respectively.

According to the report, on the Victoria Falls Stock Exchange (VFEX), SeedCo International, Natfoods, Padenga, Innscor, Caledonia, Axia and Simbisa gained 11,63 percent, 2,42 percent, 5,28 percent, 2,27 percent, 2,16 percent, 13,75 percent, and 7,69 percent during the month to close at US$0,34, US$1,48, US$0,18, US$0,45, US$16,55, US$0,09, and US$0,40, respectively.

On other hand, African Sun, Bindura, and First Capital lost 30,28 percent, 11,50 percent, and 1,48 percent to close at US$0,04, US$0,01, and US$0,02, respectively.

The report highlighted that Nedbank, West Properties Holdings, and Zimplow, on the other hand, remained unchanged during the month, trading at US$12,00, US$10,00, and US$0,04, respectively.

On the Financial Securities Exchange (Finsec), the lone counter, Old Mutual Zimbabwe Limited, rose to $4000 during the month under review.

In the fixed income space, interest rates ranged between 75 percent per annum and 130 percent per annum during the month, depending on the investment period.

Month-on-month inflation rose to 6,6 percent from the 4,7 percent that was recorded in the previous month, while annual inflation stood at 34,8 percent.

Meanwhile, the report seeks to inform members of the public about the various investment options available through different unit trust products registered under the Collective Investments Schemes Act [Chapter 24:19] and offered by different investment management firms in Zimbabwe.

Unit trusts are investment schemes that pool funds from different investors and invest according to pre-defined objectives set out in the prospectus of the fund.

The underlying investments can be in fixed-income instruments, listed equities, properties, or any other investment assets or assets introduced.

Pooling allows small investors to access these markets as well as benefit from expert investment skills from the respective fund managers.

-ebusinessweekly