Within the month of June, the Zimbabwe Stock Exchange market capitalisation went up to ZiG60.68bn, up 1.74% from ZiG59.64bn in May. The All-Share index rose marginally by 0.19% from May while the Top-10 index was relatively stronger and rose by 1.68% within the period. In real terms, the market capitalisation rose 4.65% to US$1.73bn.
Econet led in performance in the month with a 31.04% increase in share price in nominal terms, whilst Mash followed with a 20.56% increase. Star Africa was the worst performer in the period, slumping 30.80% m-o-m.
Activity on the exchange improved again with volumes going up by 161.34% to 393.33mn shares. Ecocash led on volumes performance with 260.23mn shares traded, whilst OK Zimbabwe came in second at 32.41mn shares. Value traded on the ZSE increased substantially by 98.29% in nominal terms to ZiG531.95mn, whilst average daily value traded in real terms decreased 6.96% from US$0.84mn in May to US$0.78mn. Delta and Econet remained pole on value traded for the month.
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.
