Market Comment -17.02.2021

ZSE softens further in mid-week session… The market declined further in mid-week session as reflected in all indices which ended in the red. The Top Ten Index and the Minings were the major victims amongst the Indices as the duo dropped by a similar 3.28% to close at 2410.34pts and 5340.90pts. The primary All Share Index was 2.55% softer at 3961.71pts while, the old Industrials lost 2.53% to $13237.37pts. Activity aggregates improved as volumes exchanged enhanced 81.43% to 11.51m shares, yielding a value outturn of $114.74m which was 14.74% up on yesterday. Medtech propelled the day’s volume aggregates claiming 52.22% of the total while Delta, Innscor and Cassava accounted for 41.89%,16.11% and 9.95% respectively. Capital flight continued as a mere inflow of $2.94m was registered against outflows which stood at $47.50m. Foreign purchases accounted for 2.57% of the turnover while, disposals added 97.43% of the same. Market negative breadth widened as twenty-six counters emerged as laggards against eleven fallers while, one sailed stable. Headlining the market losers was Simbisa brands which succumbed 11.78% to $18.5247 where demand could be found. Mining house RioZim followed on an 11.13% slide that took it to $19.7660. ZHL was 10.04% lower at $2.1500 while, top capitalised stock CBZ found itself in the fallers zone after slumping 9.27% to close at $90.5000. Waning demand in OKZIM help drag the retailer further down as it closed 7.70% lower on yesterday. Other losses in heavies were in SeedCo (-3.58%), Econet (-2.58%), Padenga (2.32%), Delta (-1.14%) and Cassava (-0.75%). Partially mitigating the day’s losses were gains led by Proplastics which ticked up 20% to $18.5247 while, Unifreight added 19.98% to reach an all -time high of $3.1975. NTS was 19.90% firmer at $0.4730 with spirit manufacturers AFDIS putting on 13.94% as it settled at $34.8000. FMP recovered 4.35% to $6.0000 and completed the top five gainers’ set.