The Zimbabwe Stock Exchange saw market capitalisation increase 6.98% from June to close the month at ZiG64.92bn. The All-Share index rose 4.30% in the period whilst the Top 10 index lagged behind, rising 2.68%. In real terms, the market capitalisation also rose 6.98% US$1.85bn, with exchange rate movements remain relatively muted in the month.
SeedCo led in performance in the month with a 58% increase in share price in nominal terms, whilst BAT followed with a 29% increase. ZSE Holdings Limited saw its price adjust 40% downwards as market discovery forces took place. Ok Zimbabwe also lost 30% of value within the month.
Activity on the exchange was mixed with average value traded increasing 32.24% in nominal terms to ZiG33.5mn, whilst average daily volumes slipped a marginal 0.35% to 18.66mn. Aberage daily traded in real terms stood at US$0.975mn. Ecocash led again on volumes at 238.28mn shares traded, with Econet logging 109.32mn shares. Econet represented 51% of value traded at ZiG396.66mn.
In our view, performance of the ZSE still depends heavily on money supply dynamics. Given the delicate monetary space with likelihood of policy shifts, we are in favour of agile companies that can navigate the current environment, and in the absence of capital gains, those that are consistent dividend payers.
