Small cap stocks race past the 17 000-level on low turnover

HARARE – Penny stocks continued to outperform the market on Thursday although without significant contribution to turnover.

The Small Cap Index was up 4.90% as it shot past another psychological level to 17 706 mainly on the back of trades through the e-platforms. The Index is still however the least performing index in the year to date at 49.09% while contribution to turnover was 0.17% of the $81.02 million total at $139 918.85.

Unifreight, which now has year to date returns of 1 094.89%, was up 19.97% to 222.25c. The company is still undervalued at US$2.84 million using the official exchange rate. Other gains were in Fidelity Life, which was up 15.87% to 300.00c and Zimpapers put on 14.29% to 112.00c.

On the wider market, gains were marginal with the All-Share Index adding 0.27% to 4 177.19. The market breadth was positive after recording 24 risers against 15 fallers.

 

President Mnangagwa is set to relax lockdown regulations, which will lead to a recovery in economic activity.

Natfoods, which recently says it required US$40 million to import cereals till June, was 20% higher at 10830c as it led the performance table.

The Top 10 Index gained 0.67% to 2 616.46c on the back of heavy gains of 10.48% to 2 128.09c in OK Zimbabwe. which is set to make a formal announcement on its new CEO, put on 0.47% to 4909.15c.  CBZ did not trade while there were losses in Econet of 0.42% to 1995.16c.  Hippo shed 0.25% to 9975c in the wake of its trading update, which showed a decline in sugar produced although the company is optimistic of a buoyant 2021/22 production season.

The ETF market extended losses as the Old Mutual Top 10, was down 5.96% to 181.53c in 40 trades.

The Medium Cap Index closed 0.64% weaker at 8 938.25, after a 16.67% loss to 2 000.00c in Proplastics. Dairibord which is still to finalise its deal with Dendairy was 12.53% lower to 2 011.76c.

 

Seed Co, which is to be delisted next month was 6.82% weaker at 2 800.20c. Meikles lost 4.61% to 4 124.22c ahead of the finalisation of its phase two restructuring. The group said it is finalising the refurbishment of its properties. First Mutual Properties eased 4.25% to 574.50c.

Dawn, which is set to be delisted was up 19.99% to 41.65c in one trade of 500 shares, most likely from a retail investor.

Econet contributed most of the turnover to the value of $19 million, OK Zimbabwe put in $13.96 million and Meikles $11.8 million. Total trades amounted to 327 with Delta the most active at 24 trades. Foreign sales were at $36.48 million against purchases of $12.82 million.-Financial Express.

Risers	Price	% Change	Fallers	Price	% Change
Nat Foods	$ 1.0830	+20.00%▲	Proplastics	$ 2.0000	-16.67%▼
Dawn	$0.4165	+19.99%▲	Dairibord	$ 2.0118	-12.53%▼
Unifreight	$ 2.2225	+ 19.97%▲	Seed Co	$ 2.8002	-6.82%▼
Fidelity	$ 3.0000	+15.87%▲	Meikles	$ 4.1242	-4.61%▼
Zimpapers	$ 1.1200	+14.29%▲	FMP	$ 5.7450	-4.25%▼