ZSE record 20% turnover fall

ZSE record 20% turnover fall
Published: 09 July 2014
Turnover value on the Zimbabwe Stock Exchange fell by 20 percent to $28,5 million in June as tight liquidity confined investor appetite to mostly heavyweight stocks.

Market analysts say that investors preferred defensive stocks such as CBZ, Delta and Econet, which have defied the harsh economic conditions to consistently post relatively strong sets of financial results.

Average daily trade came in at $1,2 million with financial services provider CBZ leading the way with about $5,2 million worth of its shares changing hands.

Brewer Delta was the second highest traded stock at $5,35 million followed by telecoms giant Econet Wireless, which saw $5 million  shares  changing  owners.

Volume turnover declined significantly from 235 million in May to 178,4 million as liquidity conditions continue to limit the participation of cash squeezed local investors.

Trade was dominated by foreigners, who bought and sold slightly different values of shares with about $14,9 million shares bought while $14,4 million were sold. About 60 848 160 shares were bought while 70 832 567 were sold.

However, despite the decrease in both turnover volume and value, the market closed June stronger at 186,57 points from 174,89 points in May while market capitalization surged notably to $4,8 billion from $4,4 billion in May.

Equities analysts IH Securities have predicted liquidity to improve in the second half of the year and foresee increased investor appetite extending to consumer stocks.

"In the absence of substantial policy shifts, we expect the economic environment to remain generally constrained, we therefore lean towards stocks with strong operating efficiencies to increase profitability despite the pressure run rates," IH said in its June snapshot.

The market maintained its upward trend from May, recording 7,4 percent growth to $4,8 billion driven by bellwether stocks, which appeared to be safer havens for investors.

Delta added 9,97 percent to 129c, Econet put on 1,53 percent to 67c while diversified conglomerate Innscor rose 12,84 percent to 79c to help the industrial index gain 6,67 percent.

The mining index was however not to be outdone by its industrial counterpart, vaulting 73 percent to 4,8c driven by strong performance in Bindura, which hinted good full year results.

Hwange's share price posted a weighty 56,2 percent growth to close the month at 7,5c.

Other gainers during the month of June included Truworths, which jumped 58,3 percent to 2,85c and construction concern Masimba, which jumped by 55,45 percent in June to end the half year sitting 1,71c.

Notable losses were seen in gold miner Falgold, which lost 50 percent 1,5c while pharmaceutical concern Medtech was down 42,8 percent at 0,04c and financial services group ZB, which slipped 33,3 percent closed June at 4c.
- The Herald


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