ZSE investors have sung the blues for the last 3 months and August has brought no relief to their losses. The ZSE All Share Index shed a further 16.66% in August. Investors continue to digest the changes in the environment brought about by legislation including money supply constraints, taxation changes and alternative investment opportunities. There are however signs that the dust is beginning to settle as we have more gainers than in previous months though the majority of counters reflect negative returns still. The VFEX recorded a great month with 3 of 4 counters making gains.
Gainers
14 counters overall recorded positive gains during August compared to the modest 8 gainers recorded in July. First Capital Bank (+108.95%) ruled the roost doubling its value to investors. OK Zimbabwe gave investors a 6.9% bump in value on the back of interesting news of the acquisition and the intention of the company to unbundle some of its units. Unbundling has a positive history in Zimbabwe. Other gainers in the top 10 were Zimre (+34.03%), National Tyre Services (+26.83%), Getbucks (+13.33%) which has questions over its ability to meet capital requirements for its banking licence, African Sun (+11.30%), CBZ Holdings (+11.15%), First Mutual Holdings (+9.20%), Ariston (+8.64%) and retailer Edgars (+5.27%). 4 counters Bridge Fort Capital B, Finsec listed Old Mutual Zimbabwe Limited and Turnall recorded net zero movements during the month.
GAINERS | ||
1 | First Capital | 108.95% |
2 | ZHL | 34.03% |
3 | NTS | 26.83% |
4 | Getbucks | 13.33% |
5 | African Sun | 11.30% |
6 | CBZ | 11.15% |
7 | FMHL | 9.20% |
8 | Ariston | 8.64% |
9 | OK Zim | 6.90% |
10 | Edgars | 5.27% |
Losers
Losses still weighed heavy on the ZSE. 34 counters recorded net negative movement during the month. The bottom 10 was anchored by insurer Fidelity. Bridge Fort Capital class A shares extended losses for the year by a further 46.32% in August. Heavyweights Econet (-30.09%) and Simbisa (-28.38%) also found their way into the bottom 10. Econet released delayed annual results which were positive a little too late in the month. Meanwhile, Simbisa which has year-end results due soon. The rest of the bottom 10 was made up of ZB (-42.27%), First Mutual properties (-40.18%), TSL (-38.75%), NMBZ (-30.09%), brickmaker Willdale (-28.38%) and Dairibord (-27.50%).
LOSERS | ||
1 | Fidelity | -68.19% |
2 | BFC A | -46.32% |
3 | ZB | -42.27% |
4 | FMP | -40.18% |
5 | TSL | -38.75% |
6 | NMBZ | -30.43% |
7 | Econet | -30.09% |
8 | Willdale | -28.61% |
9 | Simbisa | -28.38% |
10 | Dairibord | -27.50% |
ETFs and VFEX
The ETF market showed mostly losses with only the Morgan and Co Multi-Sector ETF reflecting positively over the month with a marginal 0.99% gain. The Old Mutual Top 10 ETF (-35.77%) continued a heavy losing streak as the Top ten counters continue to witness a loss of confidence that reverberates across the entire ZSE. The Datvest Modified Consumer Staples ETF lost 7.06%. Meanwhile, the Morgan and Co made In Zimbabwe ETF (-2.38%) and the Cass Saddle Agriculture ETF (-0.48%) were also in the red.
ETF | ||
CSAG | -0.48% | |
DMCS | -7.06% | |
MCMS | 0.99% | |
MIZ | -2.38% | |
OMTT | -35.77% |
The VFEX recorded a positive month with 3 of the 4 counters registering gains. SeedCo International won big with 19.93% gains. Padenga Holdings returned a very healthy 6.08% while Bindura Nickel Corporation started to crawl out of heavy year-to-date losses with a 3.33% gain. Caledonia recorded no movement in August.
VFEX | ||
BNC | 3.33% | |
Caledonia | 0.00% | |
Padenga | 6.08% | |
SeedCo Int | 19.93% | |
Year-to-date picture
First Capital (+536.94%) scaled to the summit of year-to-date gainers. Regular non-mover ZECO (+500%) slipped to second place while recently readmitted CFI Holdings (+295.42%) captured 3rd place. Old Mutual Zimbabwe Limited (+130%) found a place in the top 10 while former year-to-date King Axia (+109.02%) managed to squeeze in at 10th. Other members of the top 10 year to date include Getbucks (+183.33%), Morgan and Co Multi-Sector ETF (+179.29%), AfDis (+152%), African Sun (+146.08%) and RioZim (+112.5%).
GAINERS | YTD % | |
1 | First Capital | 536.94% |
2 | Zeco | 500.00% |
3 | CFI | 295.42% |
4 | Getbucks | 183.33% |
5 | MCMS | 179.29% |
6 | AFDIS | 152.00% |
7 | African Sun | 146.08% |
8 | OMZIL (Finsec) | 130.00% |
9 | RioZim | 112.50% |
10 | Axia | 109.02% |
Bridge Fort Capital class A shares compounded losses for shareholders to -70.86% year to date. Fidelity cut shareholder value by a little more than half losing 55.66% during the year. Heavyweight counters BAT Zimbabwe (-27.21%) and Hippo (-25.63%) also find themself among the bottom 10 year to date. Willdale (-41.75%), Dairibord (-37.14%), Ariston (-35.79%), General beltings (-32.46%), Zimplow (-28.17%) and SeedCo (-26.17%) make up the rest of the bottom 10 year to date. The balance on the ZSE is towards year-to-date losers with 34 counters in the red. 31 counters are positive year to date while 4 counters are net non-movers in 2022. The 5 ETFs are positive in the year while 2 VFEX counters are positive with Bindura still in the red year to date and Caledonia recording no movement this year.
LOSERS | YTD % | |
1 | BFC A | -70.86% |
2 | Fidelity | -55.66% |
3 | Willdale | -41.75% |
4 | Dairibord | -37.14% |
5 | Ariston | -35.79% |
6 | GBH | -32.46% |
7 | Zimplow | -28.17% |
8 | BAT | -27.21% |
9 | SeedCo | -26.17% |
10 | Hippo | -25.63% |
ETF | YTD % | |
CSAG | 55.00% | |
DMCS | 50.00% | |
MCMS | 179.29% | |
MIZ | 22.00% | |
OMTT | 11.41% |
VFEX | YTD % | |
BNC | -43.64% | |
Caledonia | 0.00% | |
Padenga | 61.90% | |
SeedCo Int | 20.14% | |
Outlook
Investors have been digesting the new landscape and the ZSE has experienced capital flight. We are starting to see signs that the digestion period is coming to an end company performances will start to influence share prices according as we close the year. Stock picking remains important for investors with heavyweights yet to recover from blows dealt in the middle of the year.