Large cap recoveries drive ZSE as VFEX records gains

The ZSE All Share Index was up by 3,17 percent from 95.99 points to 99.03 in the week ending April 26, 2024 as the market began appreciating the new Zimbabwe Gold (ZiG) currency.

The All Share Index was supported by recoveries in large cap counters such as OK Zimbabwe, StarAfrica and Delta.

Total market turnover for the week was ZiG 10,62 million from ZiG 2,70 million in the prior week led by Delta and Econet which recorded ZiG 4,62 million and ZiG 3,47 million respectively.

The USD denominated VFEX All-Share Index was up as well after rising by 1,63 percent from 94.57 points to 96.52 points.

However, a number of counters closed the week in the red, with Axia leading the losers after falling by 25 percent to US7.50 cents. Gains were recorded in Simbisa and Innscor which were up by 19,80 percent and 4,10 percent to US35.94 cents and US44.72 cents respectively.

Rainbow Tourism Group (RTG) released its FY2023 financial results showing an inflation-adjusted revenue growth of 126 percent from $117,7 billion in FY2022 to $266,3 billion driven by growth in room, food and beverages performance.

During the period under review, the group witnessed substantial increase in foreign currency business, with occupancy increasing from 36 percent in FY2022 to 52 percent in FY2023.

The group maintained its gross profit margin at 72 percent over the past two years which is within the industry benchmarks. EBITDA was $36,9 billion and Net Profit was $27,9 billion.

A final dividend of US$0.000104 per share and ZiG0,00071 per share was declared. An announcement shall be made with regards to the payment of the dividend.

Securities firm Platinum Securities believes, “In the coming week we are likely to continue to witness mixed trading activity on the ZSE as the market adjusts to the usage of the ZiG.

“On the VFEX, trading activity is expected to remain subdued on the back of low levels of investor participation on the VFEX arising from competing demand from numerous USD denominated assets and low foreign investor participation.”-ebusinessweekly