ZSE weekly review

ZSE weekly review
Published: 11 March 2014
The market closed the week lower with the Industrial index shedding 0.3% to close at 188.93 points. The Mining index fell sharply by 12.4% to close at 34.36 points as a result of a decrease in Hwange and Falgold that fell 25% and 14.29%, respectively.

A book over of 86.4 million Zimplow Holdings shares at 2.5c accounted for USD 2.2m of the total value traded during the week. Week-on-week turnover improved significantly to USD 9.4m on a volume of 241.5m shares, as compared to USD 5.27m on 38.57m shares.

Foreigners dominated most of the selling but we still saw a 2.4% increase for the week.

According to media sources, it was reported that Zimbabwe’s 2013 gold deliveries went down 6.02% to 12,664 kgs from 13,474 kgs in 2012, a level far below the projected 17,000 kg target. This was driven by a decline in output, as some miners closed shop last year.

Reporting season is in full swing and most major companies are showing a decline in volumes and a squeeze on prices. The latest Zimstats figures show that the year-on-year inflation rate rose to 0.41% in January, the lowest in the region.

We continue to reiterate that investors should take positions in companies with strong balance sheets, dominant market share, solid management and good fundamentals such as BATZ, Delta, Econet, Innscor and OK Zim.
- Imara Stockbrokers
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