BAT retreats despite ZSE’s new record performance

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  • The counter dropped by 20%
  • To emerge as the worst performer
  • However, ZSE extended its positive streak
  • Setting new record high of 11,120.98 amid hedge seeking

Harare – Stocks for the tobacco products manufacturer, British American Tobacco (BAT) witnessed a decline in Tuesday trades on decreasing by 20% to end in the negative territory at $2,292.5000, cancelling out its previously stellar performance streak which had taken the counter’s gains to over 12 straight sessions.

The decline for the top-dog, however, comes at a time when the ZSE has closed in another record high of 11,120.98 points after increasing by 2.95%, despite a cut down of money supply by the Reserve Bank of Zimbabwe (RBZ) in a bid to curb inflation amid hedge seeking.

Despite the fall, the Group ended the half year for the period 30 June 2021 with a solid revenue increase of 63% buoyed by increased sales volumes and export of the cut rag tobacco, which ultimately resulted in a mild but appreciated profit of 5% amid the effects of COVID-19 pandemic posed on the business operations.

With the Group closing the half year with a strong asset base of ZWL2.3 billion, its earnings per share surged by 209%, proving to be a better investment destination.

BAT has operations in around 180 countries, and its cigarette brands include Dunhill, Kent and in Zimbabwe is popularly known with products such as Madison and Everest. It manufactures, distributes and sells tobacco products for local consumption through a network of independent retailers and distributors.

Other counters which reversed their gaining streak yesterday includes Mash Holdings and sugar producer, Hippo Valley which lost ground by 7.4% and 5.67% to $4.0217 and $271.5122 in their respective order.

Financial stocks, CBZ and ZB Financial Holdings both tumbled by 4.94% and 2.64% to cap the top five laggards.

However, despite the decline of above counters, ZSE closed on a solid note stretching year to date gains to 2661.24%, with the tech-firm, Cassava SmarTech leading gainers in the session at 20.64% to close at $37.9494 as it closes the gap under which it was suspended for failure to publish audited financial results on time. The stock published its results on Monday, reporting a 26% decline in revenue.

Other gains were propelled by the beverages giant, Delta Corporation on surging 8.6%, stretching its gains to ten consecutive sessions, followed by Axia Corporation Limited which also extended gains to straight eleven sessions on adding 8.17%.

Clothing firm, Truworths and hotelier, African Sun capped the top five risers both on 6.71% and 6.12% respectively.

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