Zimdollar pares as stocks recover

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The Zim dollar continued to weaken against the American dollar on the Interbank closing at ZWL16.48, a 0.2% decline versus yesterday’s ZWL16.44. While the market was set-up to formalize forex trading, it has not yet proved to be fluid enough and continues to see suppressed trading and the parallel market remains very much alive.

Onto the local bourse, the market marginally recouped lost points in the mid-week session amidst heavy cap recovery. Of the 4 ZSE indices, 3 went up and 1 sailed stable. The duo of the ZSE All Share index and the industrials gained 0.29% each to close at 231.99 and 772.28 while the ZSE Top 10 index gained 0.31% to settle at 207.07. The resources index sailed stable.

A total of 24 counters exchanged hands in the mid-week session down from 25 counters that were active in the prior session. Of the 24, 11 traded either sides leaving 2 counters to sail stable.

Leading the risers set was Mashonaland on gaining 20.05% to close at 10c while First Mutual Life added 12.50% to settle at 27c. Econet surged 1.64% to close at 148.01c while Afdis went up 1.64% to settle at 310c. Banking Stock CBZ capped the top 5 risers set gaining 1.20% to close at 63c.

Dawn which has been stable for the past 8 sessions said in a trading update that yields have decreased as rental rates formerly charged under USD regime are now beyond affordable to the majority in ZW$ equivalence. The company reported a 223% growth in revenue for the 9 months to Sept-19 an impact of inflation and changes in currency.

The tourism market in Zimbabwe is spelling positives having raked in about US$1 billion dollars and ZWL300 million in 2018 with anticipated growth prospects. ZPI just completed a US$15 million Sawanga Mall while Old Mutual acquired more than 15 ha in the Hwange Vic Falls area. Mashonaland Holdings is making inroads, converting its Charter House into a five-star hotel in Harare CBD while seeking to build a Waterpark in Victoria Falls.

Powerspeed worsened by -16.13% to close at 26c while ZPI came off -13.85% to settle at 5.60c. Pipe manufacturer Proplastics lost -1.80% to close at 82c as crocodile skin producer Padenga eased -1.31% to settle at 250c.

Innscor capped the laggards set on dwindling -0.85% to close at 371.77c. First Capital Bank was among the losers set with the company issuing a statement that Sydney Mtsambiwa has voluntarily stepped down from his chairmanship. Sydney was at the centre of inflating Tongaat’s sugar sales in Zimbabwe, grossly misinforming investors for several years.

In Africa’s largest Stock exchange, the JSE All Share Index mounted 0.63% to 55766.45 points while the JSE top 40 went up by the same margin to 49537.29 points. The Rand weakened -0.48% against the dollar to R14.72. Anchoring economic developments in the Rand nation are growing power concerns with more load-shedding announced by the power utility provider Eskom.

Focus on the global markets is on the US Fed interest rate decision which is slated for 21:00 on Wednesday, in which the central bank is widely forecasted to keep rates unchanged at 1.75%. However, more attention will be on the following press conference in which the Fed chairman will give his remarks.

Brent crude continued to trade relatively softer as it was recorded trading 0.28% softer at $64.16/barrel just after the ZSE close.

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