Zimbabwe stock market suffers $1 billion loss

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Investors on the Zimbabwe Stock Exchange (ZSE) lost a cumulative $1 billion in the week to Wednesday as stocks traded mixed amid uncertainties brought about by the Covid-19 pandemic.

World over, investors have incurred huge losses following the outbreak of the Covid-19 pandemic which has caused severe disturbances to economic activity.

The World Bank already sees the sub-Saharan Africa region’s economic growth fall sharply from 2,4 percent in 2019 to between -2,1 percent and -5,1 percent in 2020.

Agriculture is also expected to significantly contract due to disturbances caused by the pandemic and driving the region into severe hunger and poverty.

Agriculture production is seen contracting by between 2,6 percent in an optimistic scenario and up to 7 percent if there are trade blockages. Agriculture is one of the key drivers for the region, as well as tourism sector, which has already suffered due to travel restrictions, with hospitality groups in Zimbabwe closing their facilities.

During the week under review, total market value retreated 1,47 percent to $60 billion compared to $61 billion recorded in the previous week dragged by losses in the market’s big cap counters.

The primary indicator, the ZSE All Share Index, gained a marginal 1,13 percent to close at 468,94 points while the ZSE Top 10 Index put on 1,74 percent to 390,27 points.

At 405,34 points, the ZSE Top 15 Index was 1,27 percent above prior week while the Small Cap paced the fastest with a 4,39 percent increase to 1 297 points.

The Medium Cap was down 0,24 percent to 658,88 points but has recorded the highest year to date gains of 128 percent.

Headlining risers for the week, food processor, Dairibord put on 42 percent to 86,01 cents followed by Powerspeed that jumped 25 percent to 26,5 cents.

The duo of Dawn and Edgars rose 20 percent each to 7,92 cents and 30 cents respectively. Art wrapped up the top five risers with a 17 percent increase to 48,2 cents.

Other significant gains were recorded in CBZ which jumped 13 percent to $1,80 while telecoms giant, Econet put on 7 percent to $3,02.

Mash Holdings and Old Mutual each put on 5 percent to 18 cents and $38,64 in that order while brick making firm Willdale put on 4 percent to 4,03 cents.

On the downside, diversified hospitality group Meikles eased 11 percent to $7,07 from the previous week’s $8. Resources group Bindura lost 10 percent of value to 30 cents while Medtech was down 8 percent to 3,66 cents.

Cigarette manufacturer BAT was 6,98 percent below prior week to close pegged at $80, remaining the most expensive stock on the bourse.

Axia wrapped up the week’s biggest fallers with a 6,49 percent decline to $1,93.

Other significant losses were recorded in TSL that gave up 3 percent to $1,18 while PPC and Seed Co International lost 1 percent each to $3,65 and $4,50 in that order.

Diversified industrial giant Innscor lost a marginal 0,68 percent to $7,25 while biggest company by market capitalisation, Delta, eased 0,03 percent to $6,12.

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