Market opens the week on a low note

The local bourse opened the week negative, extending its losing streak for the third consecutive session as investors’ investment declined by $7,14 billion.

The ZSE announced that the disposal of securities within 180 days from the date of purchase, will attract a Capital Gains Tax Rate (CGTR) of 40 percent on the assessed gain.

In the coming week, anticipation is that there will be a subdued buying momentum that may lead to lower stock prices.

The mainstream ZSE All Share Index, lost 0,42 percent to close at 15 051.42 points. Market capitalisation declined by $7,14 billion to $1,82 trillion.

A negative market breath – a measure of investors’ sentiment – was registered as 15 counters traded in the red against nine gainers.

Among the heavyweights, Econet put on 0,27 percent to $87.00 while Innscor added 0,02 percent to $340.51. On the flip side, Simbisa was down 1,87 percent to $235.80 while Delta fell 1,06 percent to $237.21 and Ecocash eased 0,82 percent to $41.74.

Horticulture exporter, Ariston, led the risers gaining 4,62 percent to close at $4.00. Sugar producer Starafricacorporation, was 2,70 percent higher to $1.90. Hotelier, African Sun, was up 2,36 percent to end at $26.00. First Capital Bank, gained 0,80 percent to close at $9.67. Retailer OK Zimbabwe added 0,63 percent to close at $29.82.

Losses were recorded in FML, NMBZ and Proplastics, which eased 4,08 percent, 3,99 percent and 3,84 percent to settle at $23.50, $24.00 and $28.36 respectively.

Clothing retailer, Truworths, was the worst performer. The stock was down 13,29 percent to close at $2.20. Turnall lost 10.49 percent to $3.50.

Market turnover declined from $205.27 million to $152.39 million. Delta was the most actively traded stock today. A total of 331,800 shares valued at $78,707,415 were traded.

On the Victoria Falls Stock Exchange, only Padenga traded, gaining 1,53 percent to $0.24.

The Datvest ETF was up 0,05 percent to $1.7479 while the OML ETF gained 12,49 percent to $5.86. Other ETFs were virtually flat.

Previous Week Performance

The ZSE All-Share Index which has a year to date gain of 39,67 percent gained by 1,22 percent to close the previous week at 15 115.56 from 14 933.47 in the prior week.

Market breadth was positive with 25 gainers led by FBC at 12 percent, against 12 fallers. Weekly market turnover of $999,82 million was led by Delta which saw $429 million exchange hands, followed by Econet $195 million, Innscor $158 million, Simbisa $124 million and Axia $40,2 million.

On the ETFs section, Cass Saddle Agric was the biggest gainer, after rising by 6,68 percent from $1.87 to $2.00 in the week, followed by Morgan & Co Made in Zim which rose by 1,88 percent to $21.65.

On the VFEX, SeedCo International led the gains after the price surged by 5,34 percent to US36.87 cents from US35.00 cents in the prior week.

The ZSE announced that the disposal of securities within 180 days from the date of purchase will attract a Capital Gains Tax Rate (CGTR) of 40 percent on the assessed gain.

In the coming week, anticipation is that there will be a subdued buying momentum that may lead to lower stock prices.

Commodities

Oil prices were stable on Monday, hovering close to US$100 a barrel as support from a weaker dollar and recovering Chinese crude imports met renewed demand concerns linked to China’s stringent Covid-19 containment approach.

Brent crude futures rose by US6c, or 0,06 percent to US$98.63 a barrel, as the US West Texas Intermediate crude was at US$92.60 a barrel, down US1c, or 0,01 percent.

Both contracts dropped by over US$1 per barrel earlier in the session as Chinese health officials on the weekend reiterated their commitment to a stringent Covid-19 containment approach, dashing hopes of a rebound in oil demand from the world’s top crude importer.

Gold prices slipped on Monday from a three-week high scaled in the previous session, as the US dollar regained some ground, making greenback-priced bullion more expensive for holders of other currencies.

Spot gold was down 0,4 percent at US$1 672.99 per ounce as bullion prices surged 3 percent on Friday and the dollar fell nearly 2 percent after US jobs data raised hopes about the Federal Reserve being less aggressive on rate hikes in future.

US gold futures were flat at US$1 676.30.-ebusinessweekly