A low tier counter led the risers as the Zimbabwe Stock Exchange closed a mixed 2016, which saw a strong resurgence only in the fourth quarter. At the last trading session of the year, General Beltings led the risers, gaining 700 percent to 0,8c.
The mainstream Industrials Index gained a strong 25,84 percent to 144,53 spurred by fourth quarter gains. At the end of the third quarter, the Industrials had lost 13,83 percent to 98,96c largely driven by a foreign investor sell off coupled with weak economic fundamentals.
The Minings Index was up 146,67 percent to 58,51 driven mainly by gains in Bindura and RioZim. The two counters closed the year with gains of 161,4 percent and 188,5 percent respectively.
Statistics from the ZSE are expected to show an increased foreign outflow position compared to 2015. While economic and subsequently company performance was weak, the negative sentiment up to Q3 was mainly driven by the delays in settling foreign obligations transacted on the ZSE which made a mockery of the T+5 settlement system at a time the industry was moving towards a shorter settlement cycle.
Most investors experienced delays of up to three or four weeks in the remittance of proceeds by banks despite the fact that the settlement of dividends and investment proceeds is on Priority List 1 of the Reserve Bank of Zimbabwe’s foreign payments plan.
However in the fourth quarter, scepticism over the bond notes – subsequently introduced at the end of November – and generally tight liquidity conditions which saw RBZ restrict withdrawals and foreign transfers saw the local investors looking to the stock market as a store of value.
The Industrials Index gained 46 percent in the three months and stats are expected to show an improvement in most fund portfolios which showed a negative return up until the third quarter.On the price sheet, PPC led the gains on Friday, putting on 10 percent to 55c but closed the year with a 45 percent loss in the year to date. The cement manufacturer recently commissioned its Harare plant which will see the group double its annual productions.
Seed Co also put on 6,32 percent to close above the key 100c level at 101c while Pearl Properties closed the risers table with a 2,94 percent gain to 3,5c.
Among the heavyweights, Delta gained 25,53 percent in 2016 to 88,5c with a year high price of 94c achieved in the third quarter and a year low price of 50,5c.
Delta is currently trading under caution following the announcement by the Coca Cola Company to terminate its Bottlers Agreement with AB Inbev after its takeover of SABMiller. TCCC announced it will buy AB InBev’s interest in bottling operations in Zambia, Zimbabwe, Botswana, Swaziland, Lesotho, El Salvador, and Honduras.
The deals are expected to close by end of next year while Coca-Cola also plans to re-franchise these operations. Delta has said there are no immediate changes to operations as discussions have just started but analysts expect the company to announce a dive-in-specie as a way of handling the transaction.
Innscor with a market cap of $259 million closed 2016 with a 60,2 percent gain at 48c. In the year, the group parted ways with expat Toni Fourie. Performance in the year was boosted by a strong maize division at National Foods. Econet gained 42,5 percent in the year and BAT Zimbabwe on market cap of $312 million put on 25 percent at 1 525c.
Art and Padenga were the other counters besides General Beltings, RioZim and Bindura, making up the year risers after gaining 510 percent and 119,35 percent respectively.
A total of 15 counters closed the year in negative territory with the worst being Medtech which lost 50 percent to 0,02c.
African Sun and Dawn Properties were down 29,4 percent and 20 percent respectively while Barclays whose parent company Barclays Plc announced that it was putting it up for sale lost 24,7 percent to 3,2c. – Wires.