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Business Writer

Meikles and NMB Bank Limited have joined the Zimbabwe Stock Exchange’s (ZSE) Top 10 Index constituents list after registering considerable gains during the first quarter of 2024.

The list is reviewed on a quarterly basis.

Meikles Limited, with a market capitalisation of $1,85 trillion, is currently the sixth most valuable stock on the ZSE.

Meikles operates its supermarkets through TM Pick n Pay stores, a partnership that the firm has with South African retail giant, Pick n Pay.

Arguably, the enforced in-store exchange rates are effectively a handicap for formal retailers in their ongoing battle to win back consumers from the informal sector.

“In contrast, the percentage of revenue received in foreign currency by formal retailers is below 20 percent, due to uncompetitive USD prices arising from compliance with the Government’s in-store exchange rate policy.

“There are ongoing engagements with monetary and fiscal authorities on changing the in-store exchange rate policy,” Tabani Mpofu, said in a trading update for the third quarter ended 30 November 2023.

The group’s working capital position looks stable, and it has the benefit of a foreign currency generating subsidiary. There’s also the long-term downside risk presented by a potentially subdued 2023–24 agricultural season that could lead to rising agricultural commodity prices and depressed consumer disposable incomes.

Accordingly, NMB, with a market capitalisation of $1,41 trillion, is currently the 10th most valuable stock on the local bourse.

NMB continued to focus on digital banking initiatives, leading to a substantial increase in transaction volumes on mobile banking platforms, internet banking and card transactions.

The digital banking model accounted for a significant portion of the bank’s non-funded income, reflecting the success of digitalisation efforts.

It registered a profit after tax of $275,6 billion in 2023, representing a 378 percent rise from $57,7 billion in 2022.

NMB is looking for new lines of credit from international partners amid an increased appetite for working capital financing by players in the productive sectors of the economy. This comes as the bank is one of the largest financiers of blueberry production, which are primarily sold on the international market.

The exchange’s latest review of the list, which ranks counters by market capitalisation, saw BAT and TSL falling out.

In the year ending December 2023, BAT reported a five percent decline in total volume, but showcased remarkable resilience amidst the “fluid” environment. BAT’s topline went up 147 percent to $288 billion in 2023.

The cigarette manufacturer is currently the 11th most valuable stock on the local bourse, with a market capitalisation of $1,34 trillion.

On the other hand, TSL, with a market cap of $942 billion is currently the 17th most valuable stock on the ZSE.

The 10 counters that will constitute the index until the next review on 30 June 2024 are CBZ Holdings, Delta, Econet, Ecocash Holdings, FBC, First Mutual Holdings, Hippo, Meikles, NMB and Rainbow Tourism Group.