Mid-tiers, penny stocks lead the way

Enacy Mapakame Bulls & Bears
MID-TIERS and penny stocks have this year led the bull run as investors seek stocks that offer less risk for significantly rapid price falls such as those seen in heavyweights like Econet, in event of any corporate actions that may be viewed as negative. The Zimbabwe Stock Exchange’s top five risers in the year to date comprises of mid tiers and penny stocks. Headlining the risers is Falgold which has added 66 percent to 1 cent on firming global prices of gold. Month to date, the price of gold has increased 2,58 percent to $1 226,70 an ounce.

Diversified media group Zimpapers has a 40 percent upsurge to 0,7 cents. Lafarge makes it third with a 23,1 percent increase to 48 cents.

Financial services group ZB Financial Holdings and Proplastics also make it into the top risers YTD adding 23 percent to 3,15 cents and 19 percent to 5 cents respectively.

Buildings and associated industries concern, Masimba Holdings added 11,76 percent of value to 1,9 cents while paper and packaging group Nampak rose 12,50 percent to 2,70 cents followed by Zimplow with a 10 percent increase to 3,3 cents. With good performance anticipated in both mining and agriculture on the back of good rains, Zimplow’s margins are also expected to improve.

Another paper and packaging concern, Amalgamated Regional Trading rose 6,56 percent to 6,50 cents while crocodile skin producer Padenga Holdings is 6,35 percent firmer to 17 cents.

Other notable increases were recorded in First Mutual, CFI and Axia that rose 7,14 percent to 4,50 cents, 5,24 percent to 10,25 cents and 4,17 percent to 7 cents.

Coal miner, Hwange, ZPI, Zimre Holdings Limited, Willdale, Unifreight, Dawn, CBZ Holdings, Cafca, FBC and hospitality groups African Sun and Rainbow Tourism Group remained unchanged.

Also unchanged are Powerspeed, MedTech, Get Bucks, FBC Holdings,Ariston and General Beltings. In 2016, General Beltings was the biggest riser jumping 700 percent to 0,8 cents.

Telecoms operator Econet Wireless saw its share price bounce back after falling 40 percent in January when it announced its $130 million rights offer and the ZSE board raised issues over the proposed offer.

A day before the rights offer, ZSE board chairperson, Caroline Sandura had advised Econet to postpone the meeting to a later date until certain technical issues relating to the rights issue transaction have been clarified to the satisfaction of the ZSE board. But Econet insisted the meeting should go ahead, arguing that the ZSE board had no authority to stop the EGM.

And with Econet in mind, and at an internal level, the ZSE has said investigations into the conduct of its chief executive Alban Chirume, who was sent on forced leave, would not be restricted to this debacle but will spread into other unprocedural and unethical conduct allegedly committed by him over a period of time.

This comes after the ZSE board sent Chirume on forced leave pending investigations mainly emanating from the debacle into Econet’s $130 rights issue which exposed the disconnect between the exchange’s board and its management.

In the last five trading days the mainstream Industrials Index gained a marginal 0,02 percent to 141,28 on mixed performance by both top cap counters and mid tiers.

The Minings Index of four counters jumped 17 percent to 60,73 on gains in nickel miner Bindura.

Total market capitalisation added 0,44 percent or $17 million to $3,938 billion.