Market Comment - 06.09.2021

ZSE falters as activity aggregates decline… The ZSE commenced the new week on a low note with losses registered in heavies Cassava, Innscor and Econet weighing on the market. The primary All Share Index dropped 0.86% to close at 6600.93pts while, the Industrials slipped 0.87% to 21743.36pts. The ZSE Top Ten Index took the greatest knock of 2.09% to close at 3508.90pts while, the Mining Index retreated a negligible 0.001% to 6279.83pts. Turnover was 77.11% down as it closed at a three-month low of $27.86m while, volume of shares traded declined 42.02% to 1.73m. The volume aggregate was anchored by Zimre Holdings, OKZIM and Medtech which claimed 23.33%, 19.65% and 18.77% respectively. The value drivers of the day were OKZIM, Innscor and Delta which claimed a combined 53.52%. Foreign purchases amounted to $1.61m while, sales stood at $3.51m to register a net funds outflow position of $1.9m. The Old Mutual Exchange traded fund jumped 7.08% to $2.7104 as 19,988units exchanged hands. The major casualty of the day was Cassava that succumbed 13.80% to settle at $16.5364 having touched an intra-day low of $16.5000. Conglomerate Innscor dipped 7.05% to $93.0054 while, Zimplow shed 5.57% to $15.1087. Banking group NMB went down 3.55% to $15.4271 reversing previous session gains as telecoms giant Econet trimmed 2.09% to $34.2588. The loss mitigating pack was led by Turnall which jumped 17.00% to end pegged at $4.6800 trailed by, Dairiboard that put on 9.91% to $39.25888, in the wake of a joint venture announced between the dairy company, Zimplats and Palmine, which is set to improve the milk production. Mashonaland added 7.49% to $ 2.9000 while, brick manufacturer Willdale rose 5.30% to $3.1582. Completing the top five risers of the day was bankers CBZ that added 4.07% to settle at $79.9981. Market breadth was positive at six as eighteen stocks advanced while, twelve declined and twelve remained unchanged.