The ZSE’s mainstream index slowed down by a further 4.18% to settle at 367.13 points in the midweek session, dragged by top-tier to mid-cap stocks which included market heavy Delta and year to date top performer Padenga. The mining index, however, maintained an upward trajectory gaining 1.80% to close at 98.69. Miner Hwange sustained the index after posting gains in today’s session.
A total of 26 counters exchanged hands in today’s session up from 23 in the prior session with 15 rising and 9 falling whilst the remaining 2 active counters were unchanged. The losers however dominated risers to emerge with a net index loss for the industrials.
Selling pressure remained visible especially in overweight stocks which include a number of the preferred heavy caps and some of the top performing counters year to date. Investors are evidently beginning to take profits after months of letting the profits run.
The exponential index gains have however become unsustainable as valuations are now out of proportions thereby igniting the selling pressure. With little alternatives outside of the stock market investors are likely to buy on dips in the short term capitalizing on the market fluctuations which will invariably support the ZSE indices.
Padenga was the session’s worst performer easing by 15% to settle at 85c as the counter rerate after a strong showing in recent months. Investors had sought the comfort of forex earnings through Padenga, as a hedge against a floppy monetary system characterised with devaluations of the local currency. This attracted a huge premium for the company's share price.
Delta softened by 4% to settle at 220.02c stretching its successive losing tally to 3 sessions. The counter has likewise been preferred in the current dash for stocks due to its defense characterised embodied in its value stock status. The counter has however risen beyond sustainable levels as underlying financial performance remains below historical highs.
Topping the risers set was the meat processor, Colcom which broke the jinx to reach yet another all-time high of 60.25c after adding 19.90% to the prior close.
BAT and Hwange added 19.89% and 19.87% to close at 2200c and 3.74c respectively. Hwange, Truworths and Mash added in 19.87%, 19.44% and 3.50% to close the session at 3.74c, 1.29c and 3.50c in that respective order.
Elsewhere Edgars traded at a stable price after posting strong half year results with an after tax profit of $0.5 million which was a 420% growth on the comparable period last year.
Construction and engineering group Masimba was likewise stable after releasing an impressive set of half year results. The group recorded an after tax profit of $0.14miillion which was up 23% as compared to the prior year.
Turnover came in at $2.52 million down 15% as compared to the prior session. The top value contributors were constituted of three heavy cap stocks Innscor, Delta and Old Mutual and a penny stock Ariston in that order. Total volume traded came in at 4.1 million a 34% increase compared to the prior session.