The ZSE is in dark times as it recorded another month of decline. It’s 3rd consecutive month after starting the year with a runaway rally. The ZSE All Share Index shed 16.15% to heap further misery on capital market participants. Since regulation came in to defend the currency and economy the ZSE which has high flying partly fuelled by inflation and exchange rate has borne the brunt of measures.
It’s pretty grim reading in the month as only 8 counters managed to make positive ground during July. It’s a fairly mixed bag in the gainers. ZBFH was King of the Hill with a 38.64% return to investors. Unifreight rode positive, though heavily delayed, annual financial results to gain 31.82% in July. Truworths (+17.65%), Simbisa Brands (+12.66%), African Sun (+11.83%), General Beltings Holdings (+9.36%), Edgars (+6.83%) and CFI (+1.35%) made up the rest of the gainers. Bridgefort Class B, Fidelity, RioZim, and Turnall joined regular non-mover ZECO to make it 5 non-movers on the ZSE in July.
Month Change %
39 counters, including Finsec listed OMZIL, were in the negative for July. Proplastics the biggest loser shedding over half its value to lose 52,58%. SeedCo losing almost as much shed 47.19% of its value on the back of disappointing results. Former high flyers Tanganda (-30.26%), Delta (-28.22%), Axia (-27.71%) and Ecocash (-26.90%) all joined the biggest losers. ZimRe (-32.34%), Ariston (-28.16%), Proplastics unbundler Masimba (-27.58%) and First Mutual Holdings (-27.50%) made up the rest of the bottom ten for July 2022.
Month Change %
The Victoria Falls Stock Exchange experienced mixed trading but the overall direction was positive. The VFEX All share Index gained 4.77% in July. Bindura Nickel Corporation continued its slide losing 22.48% while Padenga surged 17.40%. Caledonia and SeedCo International remained unchanged.
On the ETF board debutant, Cass Saddle Agriculture Index ETF (CSAG) was welcomed with a 55.75% gain while The Morgan & Co Multi-Sector ETF (MCMS) edged out gains of 2.64%. Pioneer OMTT conceded 21.82% as heavyweights continue to see the worst of the effects of measures. Datvest Modified Consumer Staples also gave up a lot of ground losing 18.58%. Morgan & Co Made in Zimbabwe (MIZ) ETF made marginal losses in its sophomore month shedding 1.69%.
The graph above shows the ZSE market capitalisation for the last 12 months and it paints a very clear picture of the state of Zimbabwean capital markets. The ZSE is well on its way to losing half the value it had amassed thanks to the rally in the early part of the year. It’s not all bad news though. 38 counters are positive on a year-to-date basis. All ETFs are positive year to date. With CPI inflation at 118.92%, only 12 counters and the MCMS ETF are beating inflation on a year-to-date basis.
The landscape is changing and capital market participants are still digesting the slew of measures that have been beset upon the nation to tackle inflation and exchange rate which simply are not listening to authority.