Zimbabwe

CBZ outperforms as ZSE closes 2020 with solid gain

HARARE – CBZ Holdings led the 2020 performance table as the Zimbabwe Stock Exchange closed a disruptive year with a solid 1045.79% gain, outperforming inflation and achieving double the returns in US$ terms.

CBZ, which started the year with a market cap of $479 million, is now the biggest capitalised stock at $58.41 billion. It rose 12 093.37% without accompanying fundamentals and looks overvalued at current prices. It has a 52-week low of 62c. It gained 9.62% to 8 500c at the close of Thursday’s trades.

FMP, which at one point in the year traded as one of the heavyweights, led the day’s risers gaining 20% to 270c as the All-Share Index put on 1.84% to 2 6236.34.  The session like the past two, was dominated by medium cap stocks. The Mid Cap Index gained 3.09% to 5 491.09 to take its 2020 gains to 1 829.75%, the most on the bourse. TSL which is a partner in the Commodity Exchange was also up 20.00% to 1 440.00c. Commercial goods retailer Axia saw off the day with a gain of 19.97% to 916.93c.

Gains were reversed by losses in African Sun, which saw its share price reduce to 166.50c after it lost 9.58%. Mashonaland Holdings was down 8.62% to 90.80c and Rio Zim shed 4.35% to 1 495.19c.

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The Top 10 Index with year-to-date gains of 720.72% added 1.08% to 1 671.47, with last day gains, apart from CBZ, coming from BAT Zimbabwe, which added 5.01% to 55 000c and Cassava, which was up 5.36% to 650.92c. Marginal gains were in Econet, FBC, Innscor and OK Zimbabwe. Trading in the negative was Delta, which was down 11.75% to 2 352.88c, Hippo slipping 2.40% to 9 017.12c and Padenga which closed 1.88% weaker at 2 532.14c. The Top 10 Index is the least performing in the year.

The Small Cap index was up 2.88% to 11 914.14 with year-to-date gains of 1 769.62%. Truworths added 18.92% to 29.48c as it fended off a 4.65% loss to 190.70c in Fidelity Life to keep the index in the green.

A total of 356 trades were conducted on the last day of the year, with daily turnover at $130.9 million. Foreign buys were $6.3 million, and sales amounted to $20.4 million in the day. CBZ and Delta were the most traded at $42 million and $34.6 million, respectively.

The bourse closed the year valued at $317.9 billion inclusive of Old Mutual and PPC. In USD terms it is valued at US$3.88 billion which is still lower than the US$4.2 billion reached in 2018. The Top 10 companies are worth a combined $217.8 billion or 68.53% of the market. – See commentary to follow-Financial Express.

Risers Price % Change Fallers Price % Change
FMP  270.00c   +20.00%▲ Delta 2352.88c -11.75%▼
TSL  1440.00c   +20.00%▲ African Sun 166.50c -9.58%▼
Axia  916.93c   +19.97%▲ Mash 90.86c -8.62%▼
Proplastics  860.98c   +19.86%▲ Fidelity 190.70c -4.65%▼
Truworths  29.48c   +18.92%▲ RioZim 1495.19c -4.35%▼

HMETRO