VFEX, ZSE All Share Index decline, FCB plunges over 14 percent

The Zimbabwe Stock Exchange (ZSE) experienced a bearish session on Tuesday, with the All-Share Index sliding 3,33 percent to close at 254.30 points.

The Top 10 and Top 15 indices followed suit, retreating 4,65 percent and 4,31 percent respectively, driven by losses in heavyweight counters.

However, the Small Cap Index remained flat at 100.11 points.

Key decliners included Art Corporation, which plummeted by 15 percent to ZiG51.30 and Star Africa, down 12,71 percent to ZiG2.11. SeedCo and Delta also faced significant losses, falling 10,35 percent and 9,24 percent, closing at ZiG429.25 and ZiG1,710.96, respectively.

ZHL shed 6.64 percent, ending at ZiG38.28.

On the other hand, NTS topped the gainers, surging 33,05 percent to ZiG66.53, buoyed by robust investor demand.

Nampak followed, rising 11,54 percent to ZiG145.00, while NMB edged up 1,36 percent to ZiG370.10.

The session saw strong trading activity, with Econet leading the value traded chart at ZiG4,25 million.

NTS followed, recording trades worth ZiG33,26 million, while SeedCo and Nampak registered ZiG1,63 million and ZiG1,38 million respectively.

The Victoria Falls Exchange (VFEX) mirrored the bearish trend, with its All Share Index declining by 6,64 percent to close at 93.32 points. FCB led the losses on VFEX, sliding 14,63 percent to USD 3.91c, while Axia advanced 1,78 percent to USD 8.00c.

The market was predominantly affected by selling pressure in blue-chip stocks, reflecting cautious sentiment among investors. The outlook remains mixed as traders await further macroeconomic signals.

In line with ongoing corporate developments, the ZSE Holdings company secretary, Lyndon Nkomo, provided an update on regulatory processes and upcoming changes in the listing structure of the company.

Speaking on behalf of the ZSE Holdings board, Nkomo emphasised the company’s commitment to keeping shareholders informed amid procedural adjustments.

“Further to the Cautionary Announcement and Transaction Update dated 8th November 2024, shareholders are advised that the process of obtaining regulatory approvals, including those from the Zimbabwe Revenue Authority (ZIMRA) concerning the Scheme of Reconstruction, and the Securities and Exchange Commission of Zimbabwe (SECZim) under the Self-Listing Rules (S.I. 147 of 2024), is actively in progress,” said Nkomo. He also noted that the registration of special resolutions and related statutory updates is ongoing.

However, Nkomo acknowledged potential delays.

“While it is anticipated that these approvals will be obtained in due course, certain amendments to S.I. 147 of 2024 are necessary to facilitate the listing of ZSEH Ltd on the ZSE Main Board. These adjustments may extend the timeline,” the company secretary stated.

The company pledged to maintain transparency, with Nkomo assuring shareholders of consistent updates. “Regular progress updates regarding the fulfillment of conditions precedent will be provided before the release of the Pre-Listing Statement. In the meantime, we urge shareholders to exercise caution when dealing with their shares,” he concluded.

The announcement underscores the complexity of regulatory compliance and the company’s proactive stance in addressing evolving requirements while protecting shareholder interests.-ebsinessweekl