Mixed first week of trading on stock markets as Zimpapers records gains

The Zimbabwe Stock Exchange (ZSE) closed the first week of the year on a mixed note, with market activity remaining subdued as most companies had yet to resume operations following the festive season.

However, with trading volumes expected to pick up this week as businesses reopen, the market may see renewed momentum.

The ZSE Top 15 index led gains, rising 1,20 percent to close at 213.56 points, reflecting a positive sentiment in blue-chip counters.

Conversely, the ZSE Top 10 and ZSE All-Share indices shed 0,56 percent and 1,18 percent, respectively, signalling mixed performances across sectors.

Among the top traders, Delta Corporation maintained its position as the most active counter, closing at ZiG 1 398.58 with a turnover of ZiG 25 million, despite a marginal decline of 0,26 percent.

FBC Holdings and CBZ Holdings followed, gaining 5,26 percent and 0,30 percent, respectively, as investors sought value in financial stocks.

Notable gainers for the week included Zimpapers, which surged by 66,67 percent to ZiG 10.00, and Masimba Holdings, up 11 percent to ZiG 333.00.

FBC Holdings also recorded strong growth, rising 5,26 percent to ZiG 1,000.00.

On the losing side, ZB Financial Holdings fell 26,12 percent to ZiG 480.00, marking the steepest decline for the week.

OK Zimbabwe and Fidelity Life also saw significant losses, dropping 15,00 percent and 14,59 percent, respectively.

Commenting on the outlook, Platinum Securities noted: “With the reopening of businesses post-holiday, we anticipate a rebound in market activity this week. However, the tight monetary stance maintained by the Reserve Bank of Zimbabwe may continue to weigh on liquidity and limit speculative trading.”

The tight monetary environment has prompted investors to focus on defensive stocks, particularly in the consumer and industrial sectors. Seed Co Limited, a key player in agriculture, dropped 7,62 percent but remains on the radar of long-term investors.

As trading resumes in full swing, market participants will closely monitor corporate updates and economic developments.

The ZSE’s performance in the coming weeks will likely hinge on the interplay between fiscal policies, corporate earnings, and investor sentiment.-ebsinessweekl