ZSE, VFEX record gains as nation awaits budget review

The Zimbabwe Stock Exchange (ZSE) All-Share Index continued its upward trajectory over the past week, with 26 counters closing in the green while 7 counters were in the red.

The All-Share Index reached 199.82 points, marking its highest level since rebasing in April 2024 following the introduction of the new ZiG currency. Week-on-week the index gained by 13,61 percent from 175.89 points.

Total market turnover for the week was ZiG68,22 million, a 55,19 percent increase compared to ZiG43,96 million in the prior week.

In the exchange-traded funds (ETFs) segment, Datvest and Cass Saddle Agric recorded significant gains, rising by 27,66 percent and 21,74 percent, respectively. However, Morgan & Co Multi Sector and Old Mutual ZSE Top 10 ETFs ended the week in the negative.

The Victoria Falls Stock Exchange (VFEX) All-Share Index also saw an uptick, rising by 1,54 percent from 103.78 points to 105.38 points. This growth was driven by gains in Axia, Padenga, Simbisa, SeedCo International, and Innscor.

Meanwhile, African Sun, FCB, and National Foods registered losses during the week.

Tanganda released its half-year 2024 unreviewed results, showing a 25 percent increase in net profit to US$1,97 million compared to US$1,38 million in the same period last year. This improvement was achieved despite a revenue drop from US$11,8 million to US$11,1 million, thanks to a reduction in costs.

Bulk tea production decreased by 8,96 percent from 5,6 tonnes to 5,1 tonnes, while packed tea sales volumes fell by 33 percent from 929 tonnes to 625 tonnes.

Platinum Securities, a securities company said, “Looking ahead, the 2024 mid-term budget review is set to be announced by the Minister of Finance on Thursday, 25th July 2024. Trading is expected to remain mixed, with Delta potentially trading weaker following news of their impending tax case involving a contingent liability estimated at US$54,6 million.

“On the VFEX, trading activity is anticipated to remain subdued due to low levels of investor participation, driven by competing demand for numerous USD-denominated assets and low foreign investor involvement.”

The ZSE continues to show resilience, driven by strong performance in key counters, though the upcoming budget review and pending tax cases may inject some volatility into the market.-ebusinessweekly