Heavyweights dominate ZSE

zseBusiness Reporter
HEAVYWEIGHT stocks dominated trading on the Zimbabwe Stock Exchange last week with three of them accounting for more than 75 percent shares traded. A total of 24,77 million shares exchanged hands during the week in which Econet, Delta and CBZ accounted for most of the stocks that were traded. Mobile phone operator Econet Wireless accounted for 40,57 percent of the trades, beverage maker Delta 29,7 percent and financial group CBZ contributed 8,74 percent to the sales.

Total market capitalisation declined 14,9 percent to close the week at US$5,57 billion, including shares on foreign registers.
On a year to date basis the ZSE has put on 27,09 percent to rank among the most profitable stocks in Africa thus far this year.

The industrial index closed the week 15,2 percent lower at 196,02 points. The mining index closed the week 12,6 percent weaker at 57,94 points.
The ZSE Industrial Index returned 40 percent in investment in the first half of this year compared to other key markets such as South Africa  minus 4,46 percent, Nigeria 26,10 percent, Kenya 25,40 percent, Mauritius 8,10 percent, Botswana 11,17 percent and Zambia 20,32 percent.

But even after losing 11 percent of its value in a single trade a fortnight ago the ZSE has retained its position as the most profitable stock market so far this year in Africa.

Heavyweights stocks namely Delta Corporation, Econet Wireless and Innscor lost 20,67 percent, 20,59 percent and 23,62 percent, to US119c, US54c and US80c, respectively. ABC at US55c, NicozDiamond US1,70c and Old Mutual US250c were the top gainers of the week, after increasing by 10 percent, 8,97 percent and 3,31 percent respectively.

Masimba’s share price at US8c, Edgars US10c and PG Industries US0,30c recorded the most significant losses, down 37,25 percent, 28,57 percent and 25,00 percent respectively.

Turnover on the ZSE stood at US$4,3 million on Friday with foreign buys accounting for US$2,4 million of the revenue while foreign sales slightly topped the US$3 million mark.

The trading pattern on ZSE reflects a trend that is moderating after the mad rush that saw many foreign investors exiting their portfolios due to negative foreign investor sentiment, which sent the industrial index plummeting.

But while there seemed to be more foreign sales than purchases the amount of foreign buys has drastically improved. This development is sweet news to the Zimbabwean economy as it brings in the much needed liquidity at a time imports significantly exceed the amount of exports meaning foreign investment is helping finance the trade gap.

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