Gains in select heavyweights lift ZSE as demand firms

HARARE – (FinX) – Gains in select heavyweights saw the stock market open the week in positive territory maintaining its winning streak although turnover remained below the acceptable US$1 mln level. The performance comes ahead of the 2020 National Budget presentation on November 14, which also marks the 22^nd anniversary of the fall of the Zimbabwe dollar and the introduction of new coins in the same week.

No major policy pronouncements are expected from the Finance and Economic Development Minister, who faces a budget allocation challenge after bids from ministries totalled over $100 billion against budgeted expenditure of under $40 billion. Responding to concerns raised by parliamentarians, Minister Mthuli Ncube said that Government would have to be results focused in the absence of adequate resources.

At close, the ZSE All Share Index rose 1.50% to 239.44  while the Industrials Index went past the 800 level after gaining 1.58% to 800.15. The ZSE Top 10 Index rose the most after it added 2% to 221.94 supported by gains in Padenga, Simbisa and Innscor as demand continued to firm although amid limited liquidity. Simbisa added 4.32% to 145.03c. Delta, which has delayed its September quarter trading update, was up 2.58% to 396.99c.

PPC led the risers gaining 20% to 481.5c while Edgars was the worst performer in the wake of its results. Edgars lost 17.78% to 18.5c. The Minings Index was down 4.08% to 265.04 after Bindura lost 7.69% to 12c and RioZim was down 2.02% to 210.75c.