The Zimbabwe Stock Exchange (ZSE)’s market capitalisation tumbled 4,81% in March from US$4,7 billion to US$4,49 billion owing to losses in heavy weight counters.
According to the Inter-Horizon Securities (IH) monthly snapshot, the industrial index last month fell by 5,35% to 158,22 points from 167,16 points as major companies lost ground.
Heavyweights such as Delta Beverages fell by 8,70%, Econet Wireless fell 2,91% and Innscor Africa tumbled by 6,78%.
The mining index plunged significantly by 20,68% in March to 43,93 points on the back of a loss recorded by RioZim (30% ) and Bindura (20%).
Other significant losses were in CFI Holdings, down 50%, with First Mutual Life, ZB Financial Holdings and Zimre Property Investment Holdings, losing 40% apiece in the same period.
The most substantial gains were realised in MedTech which rose by 100%, Truworths gained 87,50%, Zimpapers was up 42,86%, Zimre Holdings Ltd and Mashonaland Holdings gained by 20% and 12,5% respectively.
Activity was subdued in March, with turnover declining 49,13% to US$18,14million, with average daily trade of $0,82 million recorded for the month, IH securities said.
The most significant contributions to total value traded were Dawn, Econet Wireless and Delta Beverages, contributing 23,94%, 18,14% and 15,44% respectively.
Total volumes traded grew from 236,81% to 363,43 million shares.
“March saw the release of a number of financial results, the majority of which continued to reflect very moderate or negative top and bottom line growth and, in some cases, further pressure on the bottom line from increased provisions and negative revaluations reflecting the deteriorating economic climate,” IH said.
The securities firm noted an increased emphasis on cost containment and improving efficiencies to alleviate some of the pressure on margins, notably by National Foods, Dairiboard Zimbabwe,Colcom and Padenga amongst others.
IH say the tobacco selling season, which has kicked-off to a slow start with depressed selling prices affecting value of exports and auctioned tobacco, is likely to fall below expectations unless there is a recovery in prices.