ZSE: Investors resort to profit taking
The Zimbabwe Stock Exchange (ZSE) All-Share Index ended the week 2.10 percent lower as investors continue to take profits.
The All-Share Index was weighed down by significant losses in heavyweights such as Econet which was 11,12 percent lower, BAT that shed 5,44 percent and Tanganda that lost 16,42 percent.
A total of 16 counters ended the week in the red, while only 12 registered gains.
Among the notable gainers were FMP, which advanced by 7,64 percent to ZiGc 86.25, EcoCash, up 3,44 percent to ZIGc 39.85 and OK Zimbabwe, which rose by 1,92 percent to ZIGc 74.25.
Total market turnover for the week dropped sharply, falling 25,43 percent from ZiG 56,90 million to ZiG 42,43 million.
The week’s trading was largely driven by Econet, Delta, and CBZ, which accounted for ZiG 13,02 million, ZiG 12,28 million and ZiG 1,44 million of the total turnover, respectively.
On the exchange – traded funds (ETFs) front, only the Morgan & Co Multi-Sector ETF and Old Mutual Zimbabwe ETF saw price movements. Morgan & Co Multi-Sector ETF rose by 7,59 percent to close at ZiGc 241.00, while Old Mutual Zimbabwe ETF dropped by 3,98 percent to ZIGc 24.00.
Meanwhile, the VFEX All-Share Index rose by 1,76 percent from 105.13 points to 106.98 points, driven by gains in Invictus which gained 20,00 percent to US9.60c, Caledonia added 6,67 percent to US1600c, and WestProp was up 5,97 percent to US1,065c.
In corporate developments, EcoCash Holdings Zimbabwe released its unreviewed HY2025 financial results, revealing a 41 percent decline in revenue to ZiG 195 million compared to ZiG 330 million in the prior period.
Despite this, operating profit surged to ZiG 1,66 billion, driven by ZiG 1,2 billion in fair value gains.
The company reported a net profit of ZiG 1,49 billion and declared a dividend equivalent to ZiG 910 billion post-reporting date, funded by proceeds from non-banking units transferred to Econet Wireless Zimbabwe.
Looking ahead, the ZSE is expected to remain under pressure as liquidity challenges persist. On the VFEX, trading activity is likely to stay subdued due to low investor participation and competition from other USD-denominated assets.
According to Platinum Securities: “The market continues to face liquidity constraints, which are likely to suppress activity on the ZSE in the near term. On the VFEX, while select counters show resilience, broader participation is limited, highlighting the need for more foreign investor incentives.”-ebsinessweekl
