The Zimbabwe has had a roller coaster year so far. After growing wings and flying in the 1st quarter of the year a regulation-induced panic brought the bourse crashing down in the 2nd quarter of 2022. It’s very much mixed reading for the half-year with the exchange. The All-Share index dropped 14.22% in June bringing down the half-year performance to 113.19%. The month’s performance was heavily skewed towards losers as the effects of regulation and monetary rules takes effect for the second consecutive month. With both inflation and exchange rate running away there are dark clouds cast over the ZSE in the immediate term.
Gainers
There were gainers and more than the previous month. CBZ amalgamation target First Mutual Properties was king amongst the gainers adding a whopping 80% to investor coffers. Rainbow Tourism Group gained 50.05% and CBZ gained 47.28% Banking stocks performed well in response to the ban and then lifting of the ban on bank lending as Getbucks (36.17%) and First Capital Bank (24.05%) made the top 10 gainers. Edgars (46.50%), Mashonaland Holdings (42.03%), TSL (41.17%), CFI (40.15%) and another piece in the CBZ masterplan First Mutual Holdings Limited gained 32.62%. All in all, there were 21 gainers in June (including Finsec Listed Old Mutual Zimbabwe Limited) and 4 non-movers (ZECO Holding, RioZim, CAFCA and Bridge Fort Capital B).
Counter | Month Change % | |
1 | FMP | 80.06% |
2 | RTG | 50.05% |
3 | CBZ | 47.28% |
4 | Edgars | 46.50% |
5 | Mash | 42.03% |
6 | TSL | 41.17% |
7 | CFI | 40.15% |
8 | Getbucks | 36.17% |
9 | FMHL | 32.62% |
10 | First Capital | 24.05% |
Losers
Twin sisters Econet and Ecocash holdings are paying the price for delaying year-end financial results losing investors 32.49% and 38.85% respectively. Agro-industrial concerns featured heavily in the losers list with Dairibord (-28.59%), SeedCo (-28.07%), Innscor (-23.83%), Ariston (-19.36%) and BAT (-18.72%) all in the bottom 10. Proplastics (-25.53%) and African Sun (-20.53%) made up the bottom 10. The exchange featured 21 losers in total for June.
Counter | Month Change % | |
1 | Ecocash | -38.85% |
2 | Econet | -32.49% |
3 | Dairibord | -28.59% |
4 | SeedCo | -28.07% |
5 | Proplastics | -25.53% |
6 | Innscor | -23.83% |
7 | Meikles | -20.51% |
8 | African Sun | -20.35% |
9 | Ariston | -19.36% |
10 | BAT | -18.72% |
Indices and ETFs
The ETFs had a mixed month. The Datvest Modified Consumer Staples dropped 0.2% while The Old Mutual Top Ten ETF was weighed down by the lacklustre performances of its constituents. Morgan and Co will look back at June 2022 with a smile as their Multi-Sector ETF gained 12.72% while their debutante Made In Zimbabwe ETF gained 27% after being introduced on the 17th of June.
DMCS | -0.20% |
MCMS | 12.72% |
MIZ | 27.00% |
OMTT | -11.61% |
While the All-share and top 10 indices shed heavily in the month (14.22% and 19.97% respectively), the Medium-cap and Small-cap indices recorded modest gains of 4.77% and 8.16% in the month. The indices are still a positive year to date with the top ten index leading the bunch.
Month Change % | YTD | |
All Share Index | -14.22% | 113.19% |
Top 10 | -19.97% | 125.34% |
Medium Cap | 4.77% | 81.73% |
Small-Cap | 8.16% | 19.19% |
The optimists say there is still good value in Zimbabwe and I’m inclined to agree. We’ve been advising on stock picking being important for a few years now and I believe the birds are coming home to roost on that issue. A lot depends on the time horizon involved, in short-term investors, the target of the waves of regulation that have hit the exchange may find little joy but a medium to long-term picture holder can still make good pickings in the current bear market.
