- ART and CAFCA led the risers in the week under review
- Investors favouring forex earners
- BNC was the week’s worst performer
Harare – Counters with exposure to foreign markets continue to attract investors on the Zimbabwe Stock Exchange (ZSE) since de-dollarisation.
In the week ended 6 March 2020, 47 counters exchanged hands with 20 of these rising and 17 recording losses while 10 remained stable.
Leading the risers, were ART and CAFCA, companies that both export products to foreign markets hence earning foreign currency.
The duo gained 43.5% each with the former closing at 60c while the latter settled at 1425c.
CAFCA is among the best performing counters on a year to date basis over which it has gained over 700.5%.
Performance of these companies supports the projection by securities firm Inter-Horizon Securities (IH Securities) that of the counters on the local bourse, the ones with access to the export market would perform better.
Also making the risers list was rebranded CBZH which added 37.4% in trading to close the week at 146.01c.
Willdale, BAT and FMP also rose in the week under review, adding 23.7%, 19.7% and 19.6% apiece to settle at 7c, 8800c and 35c respectively.
ZHL, FBC and RioZim were risers as well while Innscor capped the top 10 weekly risers set moving 6% up to settle at 766.74c.
Nickel miner Bindura Nickel Company was the week’s worst performer easing by -22.1% to close the week at 44.88c while Dairibord lost -18.6% to settle at 70c.
Mashonaland Holdings which has been hit by the current inflationary environment came off -18.4% in the week to close at 17.55c while Meikles retreated by -16.6% to settle at 700c.
Also making the losers list were hotelier, African Sun which dropped by -15.7% to close at 65.09c as well as ZPI, OK, FCB and Delta.
Losses in the week under review took the cumulative weekly losses to three.
The local bourse has seen sharp selloffs as investors cash in on gains accrued between January and February over which the bourse added over 100%.
The general trend on the market over the last 3 weeks including the week under review shows that despite remaining in losses, the magnitude of losses has since subsided, highlighting a climaxing selloff.
The ZSE is currently the best performing bourse in the region.
Globally, markets remained rattled over the outbreak of Coronavirus that has spread to over 60 countries with known cases above 100 000 while more cases are expected in other countries as the virus continues to spread.
The IMF has thus lowered global growth forecast and expectations are that of a global recession similar to that experienced in 2008.
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