The ZSE posted fourth consecutive gains this week on Thursday afternoon, as investor sentiment continues to improve after an abysmal performance for the greater part of May after policy interventions by government to curb speculative trading which was undermining the value of the local currency finally tamed the bull-run.
Last month, the central bank issued measures which included a steep capital gains tax of 40 percent instead of the usual 20 percent if they bought and dumped shares in less than 270 days, a development that led to a bloodbath on the ZSE.
However, the market has been gradually regaining since last week.
By end of today’s trading session the primary indicator, the All Share Index was up 1.38 percent to close at 23 390.66 points.
The Top 10 gained 1.54 percent to 15 573.82 points as all other market caps closed in the positive. On the sector indices, the Financials were subdued dropping by a marginal 0.33 percent to settle at 23 186.70 points.
Market breadth remained positive as reflected by 25 counters posting gains against 6 stocks that were in the negative.
Property firm, First Mutual Properties made the highest jump, gaining by 14.92 percent to ZW$ 7.47 as engineering company Zimplow appreciated 14.88 percent to ZW$ 22. Dairibord was 14 percent stronger at ZW$ 57 as hotelier, Rainbow Tourism Group firmed 11.63 percent to ZW$ 7.9032. NMB gained 10.48 percent as investors responded to the bank’s EUR 12.5 million credit line facility from the European Investment Bank signed yesterday.
Leading the fallers was TSL which shed 3.45 percent to close at ZW$ 82.07 while PROL also fell by 2.94 percent to ZW$ 66. Agro-industrial firm Tanganda depreciated by 1.80 percent to close at ZW$ 245.45 as retail giant OK Zimbabwe emerged 0.92 percent weaker at ZW$ 42.0046.
According to securities firm, Morgan & Co expects the current gains to be sustained.
“Demand continued to be seen on the local bourse with volumes traded on select blue-chip counters. Market players that previously adopted a wait-and-see approach have started to find their way back into the market following the recent publication of the statutory instruments,” said Morgan & Co.
Market capitalisation marginally grew to ZW$ 2.971 trillion from ZW$ 2.931 trillion yesterday. Turnover was ZW$ 698.9 million. Foreign investors bought ZW$ 2.2 million worth of shares against ZW$1.8 sold reflecting improving sentiment.