- BAT dropped by 20%,
- Innscor extended the negative streak to $91.9567
- ZSE experiences the worst decline since mid-April this year
Harare – The Zimbabwe Stock Exchange fell on Wednesday, extending losses reported on Tuesday on lingering investor concern following US$1 billion Special Drawing Rights granted by IMF which government plans to channel a larger chunk of it towards stabilising the troubled local currency.
Risk averse investors consider that asset prices in ZWL which had moved in line with the parallel exchange rate, will begin to come off, as speculation eases.
Losses in the session were spun across all the market’s main indices, with market heavies emerging the most losers after British American Tobacco led the losing race.
Wednesday’s loss was the widest since mid-April, at -1.94%, trimming year-to-date gains to 153.79% as the local stock market tumbled by -132.71 points from the prior day loss of -23.06 points to close the session lower at 6,690.89 points.
The mid capital index was lower at -628.30 points from -200.69 previous day points amid higher demand for forex on Tuesday at the forex auction market while the top 10 indexes reversed their 7.62 points on Tuesday to -32.25 points.
At the close of trading, manufacturer and distributor of tobacco products locally, British American Tobacco recorded a 20% drop in share price to ZWL920.65 from its previous closing price of ZWL1,150.80 as it succumbed $230.1500 to $920.6500.
In a Trading Update for the quarter ended March 31 2021, the counter tumbled 55% in volumes compared to the same period last year driven by reduced consumer disposable incomes hit by the coronavirus pandemic.
Blue-chip sugarcane producers and millers, Hippo Valley Estates plunged $36.9744 to $153.0000.
In its first-quarter trading update ended June 30 2021, the company signaled about a boom output during the coming season as the Lowveld dams hold sufficient water for approximately three seasons of irrigation at normal water duty.
Masimba Holdings was $6.1068 lower at $33.3932 while Zimbabwe’s largest commercial bank CBZ limited declined by $3.8488 to close at $81.1512.
Meanwhile, the diversified conglomerate, Innscor Limited extended its negative streak from $95.0136 on Tuesday to $91.9567 after trading lower at $3.0569.
However, trading on the upside was Cassava Smartech which notched $3.0586 to $19.9959. The counter stretched its gains further from Tuesday’s gains of $16.9373.
Meikles Limited’s hospitality subsidiary, Africa Sun increased by $0.8000 to $7.8000 despite the strains caused by coronavirus to the hospitality sector.
On Tuesday, the counter announced the completion of all the conditions precedent relating to the acquisition of the entire issued ordinary shares of Dawn Properties Limited.
Meanwhile, the government yesterday reopened restaurants for sit-in patrons who are fully vaccinated, a development which the Tourism sector expects to boost the hospitality unit.
Clothing marketer, Edgars sustained its prior session gains by adding $0.1446 to $3.9000.
Financial stock, First Capital Bank increased by $0.1243 to end at $3.4914 while sugar producer, Star Africa Corporation traded $0.0831 stronger at $1.9982.
Star Africa Corporation recently said it is geared to take opportunities in the export markets as well as consolidate its market share in the region.
Equity Axis News
