The Zimbabwe Stock Exchange saw a 20.05% increase in market capitalization in nominal terms to ZiG87.34bn in October. In real terms, market capitalization grew by 3.12% to US$2.24bn. Mashonaland Holdings led in performance in the month with a 255% increase in share price in nominal terms, whilst Ariston followed with a 105% increase. Zimpapers lagged furthest behind for the month, retreating by 40% m-o-m.
Activity on the exchange weakened with volumes easing 58.34% to 107.12mn shares. Econet led volumes on the bourse with 41.36mn shares trading hands whilst Ecocash came in second at 23.67mn shares.
Value traded on the ZSE grew 83.87% in nominal terms to ZiG503.54mn, whilst average daily value traded in real terms firmed 30.97% from US$0.46mn in September to US$0.60mn. Econet and Delta accounted for 86.68% of value traded for the month, with activity elsewhere mostly centred around structured trades.
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.
