The month of March saw market capitalisation on the Zimbabwe Stock Exchange grow 1.83% to ZiG63.13bn. In real terms, the exchange however retreated 3.44% to US$1.7bn from movements in currency. The top ten index was notably down 2% in the month to a level of 200.55.
The top performers in the month were Nampak, TSL and Willdale with price increases of 107%, 42% and 32%, respectively. Mashonaland Holdings was the top loser in the month, shedding 24% of value.
Activity on the exchange was broadly slower than in February as volumes decreased 52.9% m-o-m to 92.89mn shares. Star Africa dominated volumes, accounting for 47.76mn followed by Econet and Delta who did 18.71mn and 9.18mn respectively. Average daily value traded fell 56.13% in nominal terms to ZiG11.6mn million whilst in real terms value traded for the month fell from US$15.03mn to US$6.97mn. Delta and Econet remained value leaders in the month.
In our view, performance of the ZSE still depends heavily on money supply dynamics. Given the volatile policy environment, 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.
