HARARE – Stocks fell again and activity levels were no better on Tuesday at the start of the 30-day level four national lockdown.
With coronavirus infections rising and intensive care units filling up, Government last weekend announced stricter lockdown restrictions that will likely halt the country’s fragile economic recovery. Sectors that are likely to be badly hit by the lockdown include construction, clothing retailers and property companies although citizen-wide the greatest damage will be on SME’s and the informal sector.
While the current behaviour of the stock market is typical of the start of year, economy-wide there is mounting gloom at the prospect of an economic slide, which will force some companies to scale down operations. At the close of trades, the All-Share Index was 1.76% lower to 2 583.03. The market breadth was negative after 22 stocks closed in the red and eight traded higher.
Activity levels were poor at 181 trades with turnover closing at $12.95 million from 1.92 million shares traded in the session. Cassava led the turnover contributions with $4.8 million while Innscor at $1.78 million, Axia $1.1 million and OK Zimbabwe $1 million were the only other stocks to realise turnover of above $1 million. Foreigners were net buyers after purchasing $5.33 million against disposals of $4 700.
RioZim was the day’s worst performer, losing 19.74% to 1 200c amid whispers of a potential delisting. Fellow Medium Cap stocks, Dawn and Art were also among top five losers after having shed 8.88% and 5.72% to 54.00c and 450c respectively. However, the associated Index closed 1.20 higher to 5 630.98 buoyed by gains in TSL, ZB and Nampak. Financial holdings company ZB and agro firm TSL gained 20.00% each to 2 880.00c and 2 070c respectively. Nampak added to the gains as it put on 19.93% to 273.75c.
Unifreight was 19.89% firmer to 22.30c as the Small Cap Index bounced backed into green territory as it gained a marginal 0.54% to 11 940.72.
It was a bad day for the Top 10 capitalised stocks on the market as there was no gainer in the category. Delta led the fallers as it was down 9.63% to 2 056.11c and sugar manufacturer and exporter Hippo which seeks to increase sugarcane harvests in the coming season, dropped 5.56% to 8 500.00c.
OK Zim which is facing prospects of lower sales during the month-long lockdown, was 5.55% weaker to 850.09c. Cassava, which was the most active with a trade count of 20, lost 4.56% to 620.39c. Conglomerate Innscor was down 4.01% to 3 554.27c and Padenga, which is looking at diversifying into farming, slipped 2.45% to 2 050.00c.
FBC was down 1.28% to 1 482.14c and as ICT firm Econet registered marginal losses. These losses resulted in the Top 10 Index closing 3.22% weaker at 1 601.23.
Meanwhile the OM Top Ten ETF shed 0.22% to 100c in 33 trades worth $12.36 million. -Financial Express.
|Risers||Price||% Change||Fallers||Price||% Change|