HARARE – Zimbabwe Stock Exchange shares continued with their advance on Tuesday as investors sought a safe haven in the midst of a rapid depreciation of the local currency on the parallel market where the gap with the interbank market has widened to more than 50%. Quotes on the parallel market were ranging from 39-40 against the US dollar vs. the interbank rate at 18.2226.
The performance also comes amid unconfirmed reports that a meeting convened by the President with key bodies auch as the RBZ, PAC and the MPC to find a response to the current economic disaster came up with various proposals, which might soon be communicated.
At close, turnover maintained yesterday’s levels at $30.01 million from $30.9 million yesterday mainly from Simbisa $7.6m, Delta $4.5m, Old Mutual and Econet with $4.3m each Econet continued to be the most traded equity after it had 33 of the 232 total trades.
Foreigners also improved their activity with buys of $6.8 million against sales of $3 million.
The All Share Index was up 1.49% to 478.35, on the back of a good outing by the Top 10 index which was up 2.67% to 405.92 after tech giant Econet added 7.59% to 270.31c. Beverage maker Delta was also up as it added 3.83% to end at 651.85c. On the back of improved roller meal supplies National Foods traded in the positive as it increased by 0.99% to 2040c.
Cable maker and exporter Cafca gained 5.26% to 1500c, as conglomerate Innscor added 1.81% to close at 780.86c.
Dairibord which saw no activity during the day at 75.25c might see low production levels as milk production growth is expected to drop to 6% in 2020. https://www.theanchor.co.zw/2020/03/10/zimbabwe-sees-6-drop-in-2020-milk-production/
Small caps were on a downfall as the index lost 3.65% to 1,555.99. this was a result of negative trades in ART which lost 11.76% to 60.00c and FML which was also down 9.02% to 80.06c.
Financials company Old Mutual was down 0.96% to 5002.54c, with plastic product manufacturer Nampak also down as it eased 20.00% to 80.00c. Hotelier African Sun capped the biggest losers of the day as it dropped 7.69% to 60.00c.
The medium cap index also retreated by 0.32% to 638.08.