The month of May 2021 saw the continuation of the upward trend of the ZSE. A rare piece of good news in an environment that has few short or long term investment alternative that pay positive real returns. Here are 5 takeaways from the performance of ZSE stocks in May 2021.
Getbucks takes the money
The biggest gainer of the month was once beleaguered Getbucks Microfinance Zimbabwe. The darling of the financial services counters in 2021 did the heavy lifting in May registering a 516.88% rise from 40 cents to 263 cents per share. Impressive performance can be attributed to management shake-up which from what we have seen so far will improve corporate governance in the microfinance House. The other outlier in May was First Mutual Properties which registered a 145.66% gain.
Only 4 losers
The market as a whole performed very well with only 4 counters registering a decline in value in the period under review. Turnall (-0.31%), Lafarge (-8.33%), CBZ (-10.21%) and Nampak (-16.51%) were the counters that delivered loss of value in May 2021. ZECO registered no movement again (this is a common feature) it makes it only 5 of 50 counters that failed to register a positive movement in the month. You have to like these sort of odds. Even if you had picked a counter at random 9 out of 10 times on average there would be some growth in your money.
ASI up 14.93%
The All Share Index was also in the black over the month to the tune of 14.93%. Its been a very positive year on the ZSE. The delaying of 2021 full-year results by many companies with a December year-end has been a bit of a dampener as this brews a bit of uncertainty in the metaphorical teapot. After 3 consecutive months of slowing growth in the index, it bounced back with a big win which beat inflation for the month.
6 failed to beat inflation
Looking at the bigger picture only 6 of the 50 counters failed to beat inflation. This includes the four losers and ZECO. Month on Month inflation for May 2021 according to ZimStat stood at 2.5%. The 6th counter that failed to beat inflation was food processor National Foods which only registered a growth of 0.33%.
Small caps ruled the roost
A common feature we’ve seen this year is the dominance of small-cap counters in the game of returns. This month the ZSE remained true to form. 7 of the top 10 gainers in May were priced below ZWL$10 at the beginning of the month and only one of those 7 (First Mutual Properties) closing the month above ZWL$10. Getbucks (516.88%), First Mutual Properties (145.66%), African Sun (66.45%), Star Africa (63.05%), Ariston (61.60%), Mashonaland Holdings (60%), Willdale (58.74%) and First Capital (52.81%) all started the month under that mark. Axia (44.55%) and RioZim (44.12%) made up the rest of the top 10. We have noticed an increase in the number of trades as the ZSE continues to attract more retail investors on board.
A positive month on the exchange after 2 months where returns were at best subdued is a welcome sign for investors. With the hope that other things in the economy will hold stable many say it’s still a good time to get in on the action on the ZSE.