Zimbabwe Stock Exchange in Record Year

The Zimbabwe Stock Exchange posted its best year since dollarisation, with a record $671,8 million worth of shares having so far changed hands in a year that saw the market also hit a record high on the eve of Operation Restore Legacy.

Trading in the month of November at $207,5 million surpassed the 2016 figure of $193,9 million. Trading in Econet alone ($214,3 million) was more than 2016 and nearly double that of second placed Delta.

Several large corporate deals including Barclays and NicozDiamond boosted volumes in the latter part of the year along with some portfolio realignment between FML and NSSA.

For a few days in November when the Industrials hit its record peak of 534.13, Delta was capitalised at just over $4 billion, while Econet came within a whisker of clocking the $3 billion. As of Wednesday, the market was capitalised at $9,3 billion, which would put liquidity in the year at 7.2 percent.

With two sessions to go, the Industrials index is up 178,7 percent in the year to date, while the Minings index has risen 83,89 percent.

Jubelah Magutakuona chairman of the Association of Investment Managers Zimbabwe (AIMZ) said that the stock market had done exceptionally well in 2017. Market capitalization, he said, was $17 billion before the market correction, a number which is too big and unsustainable for the economy.

“The $17 billion market capitalisation was driven by fear. In a new dispensation where people expect FDI inflows this changes. The correction has started and the $17 billion has come down to about $9 billion which is right.”

Going forward, Magutakuona said, the stock market is expected to remain firm despite disturbances that are expected to arise from elections.

“As we enter into 2018 there is a lot of hope the economic ill will be corrected. We anticipate to start seeing real earnings particularly from the big counters and new listings as well.”

“The positive momentum is expected to suffer a little volatility as we go towards elections but overall the direction is expected be firm.”

Year Value Volume

2009 $413,976,724 4,593,479,746

2010 $391,572,192 6,800,155,462

2011 $477,523,919 4,610,008,413

2012 $448,179,266 3,513,176,891

2013 $485,719,802 2,996,886,088

2014 $452,865,752 3,179,300,954

2015 $228,626,287 2,223,501,815

2016 $193,912,389 1,501,589,741

2017 $671,835,247 3,322,443,942

2017 Value Volume

Jan $8,552,699 31,616,982

Feb $10,970,197 85,314,995

Mar $26,933,720 242,884,187

Apr $11,205,670 75,857,712

May $17,637,003 170,830,515

Jun $39,747,329 311,145,262

Jul $24,705,399 153,439,454

Aug $13,600,669 115,925,416

Sep $89,808,134 264,086,673

Oct $168,828,632 1,006,788,402

Nov $207,524,047 196,492,509

Dec $52,321,748 668,061,835

Total $671,835,247 3,322,443,942

General Beltings was the year’s top performer, rising 900 percent over the year while RTG was bottom at minus 16.7 percent. In the top 10 risers there was only one clue chip – Hippo, which soared 402.9 percent in the year. Among the worst performers of the year was Old Mutual, up 30.3 percent on the year.

No one would have been able to predict at the beginning of 2017 would have come close to predicting what would have happened this year – the market was driven to a record high on the back of liquidity from maturing TBs and multiple exchange rates and to a lesser extent inflationary fears.

At the start of the year, it was a different picture however as confidence in the market as foreign participation continued to decrease owing to the difficulties in the repatriation of funds. And while the Reserve Bank of Zimbabwe announced the availability of a $5 million facility, it is still to be operational, while the backlog is said to have risen to above $100 million.

Most active counters

Counter Value Counter Volume Comment

Econet $214,348,434 NicozDiamond 524,577,552 FML takeover

Delta $121,676,008 RTG 411,588,768 FML sells to NSSA

Old Mutual $77,508,218 Barclays 409,405,412 FMB Malawi takeover

Innscor $40,453,840 ZPI 300,348,402 ZHL restructures

Simbisa $25,923,135 Econet 291,886,210 Share buyback

Seedco $22,413,971 FMP 281,612,655 NSSA sells to FML

Padenga $21,213,695 OK Zimbabwe 107,324,791

Axia $17,715,040 Axia 86,636,829

OK Zimbabwe $16,775,272 Delta 69,663,029

FMP $15,845,923 Simbisa 56,783,794