ZSE close positive on strong blue chip gains

The Zimbabwe Stock Exchange’s major indices closed positive for the fourth consecutive day yesterday amid strong gains from blue chip companies.

By the close of trading, the ZSE Top 10 index was the top riser up 2.26 percent to 2 538.95.

The Small Cap Index was the only one to fall down 1.47 percent to 44 152.74.

As a result the ZSE All Share Index ended the day with a 1.40 percent gain to 4 414.04.

Among the blue chip companies Delta was the top riser with a 4.26 percent gain to $42.78 followed by FBC and Innscor up 3.41 percent and 3.25 percent respectively.

The gains come as stockbroking firm IH Securities this week projected that these big cap counters are some of the undervalued ZSE stocks.

In a research note themed “Riding The Wave” IH said the economic recovery will be in favour of consumer facing businesses including some listed on the Zimbabwe Stock Exchange.

“Reviewing latest trading updates and financials of consumer facing businesses like Delta, Innscor and Econet; we see a marked improvement in trading volumes for the half year ended December 2020 albeit off a low base but signalling that consumer spend may be more robust than expected as lockdown restrictions ease going into 2Q21.”

“We foresee a resilient earnings base in select consumer names which will now be increasing dollarized post SI 185 – we believe there is a prescient opportunity in under-valued equities,” the brokerage firm said.

Crocodile skin producer Padenga was however the day’s top riser up 14.52 percent to $30.

A total $104.8 million worth of shares changed hands yesterday.-ebusinessweekly.co.w