The Zimbabwe Stock Exchange All Share Index gained 28.93% in February 2023 to make the first two months positive for the exchange. This is in spite of losing heavyweight counter Innscor which moved to the VFEX, where it did not receive the warmest welcome. Axia will also move to the VFEX as it was delisted from the ZSE on the 24th of February. ZSE investors are currently in good spirits as greens dominated the month-on-month movement.
Tourism concern African Sun lead the gainers by a country mile returning 206.29% for the month of February. Nampak (+73.90%), Zimpapers (+67.31%), Tanganda (+63.17%), CFI (+51.86%) and Dairibord (50.38%) all handsomely rewarded investors with returns North of 50%. Ariston (+47.61%), Turnall (+47.48%), First Capital (+42.59%) and Zimre Holdings (+42.20%) rounded up the top 10. The top gainers were weighted to agriculture with 4 counters having an agricultural focus. The rest of the top 10 is pretty widespread. The market had 40 gainers in total.
On the other end of the spectrum, only 7 counters were in the negative in February. Willdale was the biggest loser dropping 10.77% in February. The Morgan & Co Multi-Sector ETF lost 10.01%. VFEX-bound SeedCo Limited failed to experience the VFEX effect like others who have gone before it losing 8.48% in the month. Cass Saddle Agriculture Index ETF dropped 6.67% weighed down by SeedCo Limited’s effect on the index. Star Africa which had a spot of bother in their production dropped 4.88%. CBZ retreated at 3.06% while BAT dropped marginally by 0.24%. The ZSE also had 3 non-movers in February featuring regular non-mover ZECO and both classes of BridgeFort Capital.
ETFs + REIT
ETF + REIT
The ETFs were a mixed bag. Cass Saddle responded to the drop in the agricultural index as mentioned before. We already mentioned the MCMS. Datvest Modified Consumer Staples gained 26.83% in the month while OMTT (+13.38%) and MIZ (11.83%) were also in the positive. The Tigere REIT spent a second month in the red dropping 7.90%.
The VFEX welcome Innscor to its ranks. While we cannot give a month-on-month return for the counter it dropped 9.07% on its first day of trading and 4.75% on the second day of trading to close out the month. There seems to be no end to Bindura shareholders and last month’s gain now seems like an anomaly. BNC gave up a further 30% of shareholder value. Padenga slipped 13.04%. Only SeedCo International (+12.70%) and Simbisa (+4.84%) brought some cheer to the West of Zimbabwe. Caledonia, NatFoods and Nedbank all held for the month.
The ZSE is starting to look a little thin with Axia and SeedCo set to join the VFEX. We’ve already seen the deal for switching to the VFEX lose some of its allure with foreign currency retention flattened across the board. Worries are already floating about the exchange heating up too soon.