Market Comment - 08.06.2023

ZSE soars higher as exchange rate depreciation continues... The ZSE continued to soar higher in the session under review as exchange rate depreciation continued both on the formal and parallel markets. The All-Share Index surged 14.77% to close at 167,721.84pts anchored by heavies. The Blue-chip Index garnered 16.94% to close at 104,672.14pts while, the Agriculture Index jumped 13.62% to 628.49pts. The Mid-Cap Index was up 7.30% to end pegged at 286,200.52pts. The top five counters of the day all rose by 15% only to be restricted by circuit breakers, highlighting that demand continues to outstrip supply in market. The demand is being driven by excess supply of the ZWL currency in the market. Dairibord led the group as it closed at $552.0000 followed by mining concern RioZim that ended trading at $368.0000. Banking Group CBZ, Hippo Valley and Meikles closed trading at $1,860.0000, $2,434.1500, and $2,033.15000 respectively. Partially offsetting today’s gains were losses in Zimpapers that shed 14.95% to end at a VWAP of $7.3200 followed by agriculture concern Ariston that retreated 13.72% to settle at $15.0214. Spirit and wines manufacturer AFDIS was down 3.50% at $1,238.4493 while, apparel retailer Edgars fell 0.46% to close at $75.0000. Activity aggregates enhanced today as volume of shares traded ballooned by 5,022.52% to see 39.16m shares worth $19.90bn exchanged hands. This represented 1,629.66% increase in turnover. Headlining today’s volume aggregate was Ariston that claimed 83.21% of the total while, Delta was the other notable volume contributor with 11.26%. Heavy cap counter Delta highlighted today’s value aggregate as it claimed 88.29% of the value traded. In the ETF category four of the five funds registered positive movement with the major gainers being Morgan & co Made in Zimbabwe and Morgan & C0 Multi Sector ETF. The Morgan & Co duo advanced 14.87% and 14.18% respectively. Cass Saddle ETF was stable at $3.9600 as 162,837 units exchanged hands. The Tigere REIT closed 13.73% higher at $182.1073 after 1.36m units traded in today’s session.