Will positive performance at ZSE be sustained?

The local bourse added 0,63 percent on Wednesday in extension of their newfound upturn ahead of the third quarter earnings season expected to begin any moment soon.

Market observers expect the positive performance to be sustained as investors seek out bargain and continued positioning for the third quarter earnings season in the equity market.

Market breadth, often used to determine the level of investors’ sentiment towards trade, was positive, with 20 gainers emerging, compared to four laggards.

At close of trade, the mainstream ZSE All Share Index gained 0,63 percent to close at 13 487.15 points. Accordingly, market capitalisation surged by $9,66 billion to end at $1,64 trillion.

Losses in BAT and Hippo saw the Top 10 Index losing 0,08 percent to 7 921.22 points. Cigarette manufacturer BAT was down 5 percent to close at $2 850.00 while Hippo eased 2,90 percent to end at $200.95.

Marginal gains were recorded in Simbisa, EcoCash and Delta which rose 0,79 percent, 0,53 percent and 0,51 percent to settle at $162.43, $49.84 and $206.41 respectively.

The Medium Cap Index gained the most, rising 2,23 percent to close at 29 920.19 points.

Transcorp Hotels led gainers, appreciating by 14,97 percent to close at $29.30. First Capital Bank added 11,05 percent to end today’s trade at $10.00. Axia went up by 10,62 percent to $55.33. Afdis rose to $299.00, notching up 8,33 percent in the process. Ariston completed the top five, climbing by 6,43 percent to $3.92.

FMP was the worst performing stock, declining by 13,67 percent to close at $6.00. ZHL fell to $4.55, losing 8,85 percent.

The Small Cap Index was flat 493 292.78 points.

In all, 8,67 million shares valued at $600 billion were traded in 289 deals. Transactions in the shares of Econet topped the activity chart with 2,69 million shares valued at $229 million.

On the derivatives market, the Datvest Modified Consumer Staples ETF lost 0,05 percent to close at $1.7092, the Morgan & Co Made in Zimbabwe fell 0,70 percent to $1.2000 and the OM ZSE Top-10 ETF was down 0,14 percent to end at $5.1926.

However, the Morgan & Co Multi Sector and the Cass Saddle Agriculture ETF were flat at $25.1765 and $2.0000 in that order.

Oil futures recouped some of the previous season’s 2 percent loss on Wednesday, supported by supply concerns stemming from last week’s Opec+ cut to its production target, though a stronger dollar weighed on sentiment.

Brent crude futures were up US$36c, or 0,4 percent, at US$94.65 a barrel after touching a session low of US$93.33. West Texas Intermediate was up US$21c, or 0,2 percent, at US$89.56 after a session low of US$88.27.

Currently there are two dominant forces in the oil market at the moment: the economic outlook being the primary downside risk and Opec+ the upside.

Gold prices traded in a narrow range on Wednesday as investors looked for more clues on the pace of US monetary tightening from Federal Reserve minutes and inflation data due this week.

Spot gold fell 0,1 percent to US$1 662.98 per ounce, hovering close to a one-week low touched on Tuesday. US gold futures were down 0,9 percent at US$1 671.00.-newsday