Investment markets in Zimbabwe provided another interesting month for investors. The ZSE continued its gaining streak though with ever-decreasing returns at 1.2% for the month of September. The gainers and losers were close to evenly distributed. The VFEX had more gainers than losers while the ETF and REIT board was all green for the month.
After collapsing in the previous month when penny stocks (those with a share price below the Zimbabwean dollar equivalent of 1 US cent) were allowed larger circuit breakers, Willdale (198.12%) bounced back almost tripling shareholders’ funds. Truworths (+100%) came in second-best doubling shareholder value while Masimba Holdings provided investors an impressive 78.70% return for the month. The rest of the top 10 was Nampak (+47.11%), Turnall (+41.94%), OMTT ETF (+37.40%), NMBZ (+34.73%), MCMS ETF (+34.38%), Masimba associate Proplastics (+31.83%) and Ariston Holdings (+27.88%). In total, the ZSE had 26 gainers (out of 55) in September.
On the opposite end of the spectrum recent high-flyer SeedCo gave up 52.35% of shareholder value. Finsec listed Old Mutual Zimbabwe Limited surrendered 35% of shareholder wealth while Dairiboard slid 20.06% in September. Other major losers were Hippo (-17.50%), RTG(-13.75%), Tanganda (-13.47%), Edgar’s (-10.78%), Star Africa (-10.12%), BAT (-9.21%) and ART (-9.12%). The total number of losers during the month was 17. The market had 7 non-movers which featured some familiar names. CFI, delisting Getbucks, Mashonaland holdings, and CAFCA joined perpetual non-movers BridgeFort Class A, BridgeFort Class B, and Zeco in September.
ETFs and REIT
The investment funds provided good news across the board in September. OMTT (+37.40%) made the biggest gain here. MCMS, which also appeared in the top 10 gained 34.38%. Significant gains were also realized by holders of the Made In Zimbabwe ETF (+24.21%), DMCS (+19.52% and Tigere REIT (+15.17%). The CSAG had a marginal gain of +0.69%.
ETF + REIT
To the West of the country, the board was dominated by the gainers. With 8 gainers, 3 losers, and 2 non-movers in September. First Capital Bank (+47.00%) leads the pack followed closely by African Sun (+36.36%). The Caledonia ZDR (+20.00%), Axia (+13.94%), Innscor (13.31%), Simbisa (+7.28%), and Padenga (+1.76%) all made gains for shareholders. Bindura changed its fortunes around to record a rare gain of 0.88% in September. Zimplow (-5.19%), SeedCo International (-8.00%), and National Foods (-31.08%) were the VFEx losers for the month. Nedbank ZDR and WestProp were non-movers for the month.
After wading the waters of the election period the investment markets in Zimbabwe seem to have held steady and are preparing for the next chapter. The next chapter seems to be characterized by the same economic fundamentals as the previous chapter and for that reason it’s not unreasonable to expect more of the same.