Stalling big caps drag ZSE lower

HARARE – The ZSE made marginal losses in the weeks opening session, with subdued performance in a few big caps outweighing some notable gains in mid-tier stocks. Trade activity was dominated by the Innscor share while activity in other counters was decidedly thin.

Looking ahead, rising inflationary pressures are expected to see trading activity surge as investors seek safety in stocks. The emphasis is expected to fall the more liquid blue chips and big cap shares, although net exporters and foreign currency generators should also have a strong market.

Beyond that, the release of half year financial results is expected to be delayed as international accounting standards call for the adjustment of historical figures once annual inflation passes 100%. This will likely see trading continue to be slanted towards inflation hedging with no clear picture on how business operations are interacting with the economic environment.

At the close of trade market turnover reached $10.4 million with 5.3 million shares traded in 70 trades. The most traded counter was Innscor which drew 12 trades valuing 9.53 million, which was also the highest value as the share lost 0.86% to close at $2.25. Dual listed shares; Old Mutual drew 5 trades valuing $129.9k as it gained 1.8% to close at $16.0309; PPC was inactive as it stayed at $1.95 and SeedCo International drew 3 trades valuing 13.1k.

The losses in heavy weight Cassava Smartech offset gains other stocks to see the All Share and Industrial Indices both shed 0.04% to close at 191.39 and 638.54 respectively. The Top 10 Index lost 0.64% to close at 182.04 while the Mining Index was flat at 251.30.

Industrial holding TSL limited led the top gainers with a 20% climb to close at 60 cents in a single trade valuing $2.3k. Insurance group First Mutual Holdings rose 13.1% to close at 25 cents in 3 trades valuing $8.4k. Industrial holding Meikles Limited gained 12.83% to settle at $1.2411 following the release of its 2019 financial year results last Friday. Consumer stock Starafricacorporation added 11.1% to close at 2 cents Financial Services group ZBFH added 9.1% to close at 60 cents.

Dual listed SeedCo International led the top fallers with a 2.8% drop to close at $1.5041. Cassava Smartech continued its slide with a 2.3% fall to close at $1.6449 in 5 trades valuing $31.6k. Consumer stock OKZim shed 2.2% to close at 44 cents. Banking stock First Capital lost 1.54% to settle at 6.4 cents. Another consumer stock in Simbisa Brands lost 1.28% to close at $1.06.

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