Zimbabwe

Stocks in lacklustre session ahead of Budget presentation

HARARE – Zimbabwe Stock Exchange shares remained in negative territory on Thursday ahead of the presentation of the 2021 National Budget. The Budget, which is the first to be aligned to the National Development Strategy whose growth is premised on the revival and creation of industry value chains.

The 2021 budget which will run under the theme ‘Building resilience and sustainable economic recovery’ is projected to focus on strengthening the economy to withstand any potential climatic and macroeconomic shocks. The budget will pay particular attention to reducing poverty through promoting equitable shared growth and resuscitating distressed sectors of the economy, strengthening social service delivery systems and establishing resilient and inclusive safety nets to protect the vulnerable members of the society.

It will seek to drive industry growth while also introducing new measures to capture the informal sector and new levies on industry such as a cannabis levy, and an upward review of excise duties. The budget will review the tax-free threshold from the current $5000 to possibly double that amount while tax bands will be adjusted. The budget is also expected to polish or rather refine the payment of taxes in foreign currency.

Specifically, for the capital markets, players would be keen to see incentives on new investment instruments such as REITS, ETFS.

At close, the All Share Index was down 0.52% to 1 565.90 after continued losses in heavyweights offset the significant gains made in small cap counters. Turnover was lacklustre at $21.98 million with the only significant contribution coming from Masimba, Econet and Delta.

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Masimba rose 17.16% to 421.16c as 1.1 million shares changed hands in a deal worth $4.92 million. This is the third consecutive day of significant volume in the stock. The gain in Masimba Holdings saw the Small Cap Index rise 3.44% to 7 040.66.

The Top Ten Index was down 0.70% to 1 007.94 weighed down by Delta’s 4.61% loss to 1739.89c. – Financial Express

HMETRO