The benchmark industrial index notched up 2.5% in the week which is a sharper upsurge when compared to the prior week and the 6 week average weekly gain of below 1%. The index closed at 207.09 which is its highest level since January 2014. The mainstream index touched a post dollarisation highest in August of 2013 around election time. Year to date the index has gone up by 43% and the rise is supported by a total of 42 industrial stocks which are all trading ahead of their year opening prices. The mining index recorded sharp gains rising by 13% to 73.92 which is its best weekly performance year to date.
A total of 25 stocks, up from 17 in the prior week, recorded share price gains in the week, these emanating from a total of 37 active stocks in the week. Only 3 stocks, which included 2 banks, saw their share price plummet. CFI remained the most demanded stock retaining pole position among the top risers for the third straight week. CFI rose by 37% to 51.03c which is a post dollarisation highest for the counter. Cumulatively the stock has risen by 424% year to date and over 200% of the gain was realized under a one month period in July. Driving demand is a battle for control between the 2 majority shareholders in the company both with holdings above the ZSE threshold of 35%. Based on current trades it appears the battle still continues and either parties are willing to go all the way even at ridiculous valuations which are not fundamentally justified. Simbisa also remained among the top risers adding 20% in the week to close at 27c as the company looks at widening its regional footprint after giving a capital raise on an alternative bourse earmarked for financing expansion. The company may be looking to enter Rwanda among other countries. Simbisa is already invested in over 14 African countries. Meikles which has been on a freefall in prior week’s salvaged 7.8% to close at 11c while Star Africa recovered 8.3% to close at 1.3c.
Among the losers was Art which came off by 18.2% to close at 4.5c and 2 banking stock Barclays and ZBFH which tumbles -17% and 15.2% each to 3c and 14c respectively. The decline came against the MPS release which highlighted the further growth in bank’s profitability, largely underpinned by increased transactions volumes.
Value traded in the week came in at $3.12 million which is 8% below the previous week’s out-turn. Average daily turnover consequently came in lower at $0.64 million which is a 45% dearth compared to the July average daily turnover of $1.14 million. Cement maker, dual listed PPC emerged as the most sought after stock by value of trades accounting for 28% of the week total turnover. Among the top demanded stocks were heavy-caps Delta, Old Mutual and CBZ. The performance came against the introduction of a $5 million investor flow stabilization fund to smoothen foreign portfolio divestment's from the ZSE.