Overall Comment
• All Share Index YTD gains clock 600% once again
• Local bourse posts highest weekly gain in 10-weeks
• ZWL stabilisation contributing to firm ZSE prices
Bulls charged strongly in the week under review helping the stock market post one of its strongest weekly performances in months. The ZSE added 6.76% in the week under review taking its winning streak to 3 weeks. Gains accrued over the week rank as the highest in 10 weeks coming on the backdrop of noted volumes recovery in post COVID-19 lockdown trading period. Companies have begun reporting strong double-digit growth in volumes in period to September either on a quarterly or bi-annual scale. Delta which is one of the of the biggest companies on the ZSE by scale of operations, last week reported a fairly strong set of numbers showing a recovery trend in volumes in the key segment of lager beer. Meanwhile a stabilising currency and improved fundamentals such as improving national income has also helped restore confidence in the economy, thus driving the stock market in the positive. The week’s gains drove the ZSE to near pre-suspension levels of above 600 points, which is the highest the bourse has scaled to this year.
Stocks Performance
A cumulative aggregate of 46 counters exchanged hands in the week under review, with risers set coming in at 27. Delta beverages extended gains from prior week to emerge as the top gainer on adding 34.9% to close at 2300.55c. The company posted strong volumes recovery in key segments for the quarter and half year period to September after months of volumes loss. Another heavy Econet trailed the top performer on adding 26.8% to settle at 500.27c while SeedCo reversed prior week losses on adding 20.7% to settle at 1827.62c. Star Africa, which topped risers set in the prior week, buttressed gains by 19.9% to close at 30c. Padenga took its oscillatory performance to a 4th straight week on surging 19.8% to settle at 1646.36c, followed by NatFoods which garnered 19.5% to settle at 6000c. Peer, OK Zim, added 18.4% to settle at 572.29c while the duo of FML and Mashhold gained 17.1% and 16.8% respectively to close at 480c and 59.19c each. Axia added momentum to prior week gains, adding 15.2% to settle at 520.92c to cap the Top 10 risers set.
On the downside, a dozen stocks weighed on the market. Hotelier African Sun closed weakest upon slumping -18.9% to settle at 150c as the hospitality sector which feeds from tourism, has been one of the hardest sectors this year following the COVID-19 outbreak. Demand is however beginning to pick up in some instances but international arrivals are likely to remain suppressed as the second wave of COVID-19 hits harder. ZBFH trailed on losing -14.3% to close at 1500c. Dairibord plunged -11.2% from the prior week’s close to 799.10c. The duo of Truworths and NMBZ softened -10.5% apiece to settle at 15.57c and 259.50c in that order. CBZ retreated by -8.9% to close at 3999.14c while Zimplow closed at 450.04c after easing -8.7%. ZHL dwindled by -3.4% to settle at 280c leaving the duo of ARTD and BNC to cap the Top 10 laggards set on shedding -2.7% and -1.4% each to close the week at 220c and 345c apiece.
