The ZSE provided a month of excitement though investors may not be happy with the direction that ultimately drove the exchange in. The result was a loss of 3.7% of value overall. Just over a year after the exchange reopened after being closed in 2020 between June 26th and August 3rd. Overall the exchange registered 17 gainers and 30 net losers.
There were a total of 17 net gainers on the ZSE, king amongst them being once again Getbucks which has had what can only be described as a tumultuous year. At 43.73% gain, it was certainly an outlier on the exchange. Other notable gainers include Telecoms giant Econet (25.14%), the Old Mutual Top Ten ETF (25.04%) which finally registered some good movement thanks to announcing that it would distribute dividends attributable to ETF holders and Cassava (21%). The rest of the top 10 was made up of TSL (13.69%), SeedCo Limited (13.04%), Edgars (6.07%), ZB Financial Holdings (3.90%) which is under new leadership, Zimplow (3.59%) and First Capital Bank (3.58%).
The losers weighed heavy on the bourse in August. Star Africa limited was chief amongst them losing 29.9%. Despite recording a lot of good news in recent months the sugar and related products manufacturer’s shares have a had tough going in the market. General Beltings Holdings also slipped significantly by 20.42%. Zimpapers which had shown very good signs in the last few months also registered a hefty 20% drop. The rest of the bottom 10 was made up by Truworths (-16.42%), Innscor (-16.29%) which is due to report full-year results soon, NMBZ (-15.84%), CBZ (-15.79%) as they consider a switch to the VFEX, Medtech (-15.45%), Mashonaland Holdings (-15.38%) and Innscor related company Axia (-15.13%). Fidelity and Nampak joined regular non-mover ZECO to make it 3 non-movers.
Overall the market has been adjusting to changing conditions. While the pressure posed by inflation is slightly on the decline the parallel market rate movement has kept the pressure on money. The reality is a reduction of 3.7% on the exchange can be considered business as usual. It does dowse the flames that the ZSE had fanned over the last few months. The capitalisation indices all registered losses with the top 10 index down 1%, the medium Cap index down 4% and the darling of the ZSE Small-Cap index down 6% in the month.
As to what the future holds on the market a blanket prediction is neither feasible nor practical. We cannot after all buy the entire exchange but rather individual companies. It still looks like the market will be dominated by movement in the small and medium cap counters. However quality is permanent and though they have been subdued movements in the top and blue-chip companies are a sign of things to come.