ZSE turnover slightly down in first four months

by Shingirai Huni | Sunday, Apr 20, 2014 | 2840 views

zimbabwe stock exchangeZIMBABWE Stock Exchange turnover since the beginning of the year amounted to $118,6 million, slightly lower than $120,4 million invested in the first quarter of last year.
An analysis by a leading broker, Lynton-Edwards showed that foreign investors continue to dominate the local bourse, contributing more than 67 percent of the market’s total turnover.
This has been an improvement from a foreign contribution of 62,7 percent last year.

The analysis shows that foreign investors bought shares worth $79,4 million and sold shares worth $47,3 million, resulting in foreigners being net buyers of shares worth $32 million.

Foreigners actually increased their portfolio investments into the country, having bought shares worth $79,4 million, against $75,6 million they bought during the same period in 2013.

It noted that prices on the local bourse have, however, been tumbling since January with about 44 stocks trading at prices lower than their opening prices this year, and 16 of these stocks are down by at least 30 percent.

This resulted in the Industrial Index losing 12,76 percent in the first quarter, while the Mining Index fell further losing 35,55 percent.

Major fallers for the period under review were Pelhams down 90 percent to 0.01 cent, Cottco down 81,67 percent to 1.1 cent, Hunyani down 50 percent to one cent, Hwange down 44,44 percent to five cents and CFI down 38,89 percent to 2,2 cents.

Big cap stocks were also mostly negative with Delta losing 17,91 percent to 115,01 cents, BAT was down 8,33 percent to 1100 cents, Innscor down 22.25 percent to 62,2 cents and Meikles down 13,16 percent.

A few big caps, however, recorded gains with Econet picking up 3,53 percent to 62,12 cents, CBZ up 6.67 percent to 16 cents, Old Mutual up 0,79 percent to 255 cents and National Foods up 7,5 percent to 215 cents.

The top risers were Art up 100 percent to 0,4 cents, Pioneer up 66,67 percent to five cents, Zimpapers up 25 percent to one cent and Ariston up 23,60 percent to 1,1 cents.

Last week, the equities market closed the short week on Thursday in the red down 5,66 percent to 164,79 points.

Total market capitalisation followed the losing trend closing 4.91 percent lower at $4,24 billion having lost $219.5 million in value throughout the week.

Big cap stocks were part of the falling stocks with Delta shedding 4,54 percent to 105 cents in the wake of its trading update which showed a decline in volumes and flat turnover for the year to March 2014.

Econet also lost 4.06 percent to close at 59 cents while Hippo and Innscor also recorded losses down 5,38 percent and 4,34 percent respectively.

Bigger losses were, however, recorded in Cottco down 20 percent to 0.8 cents, DZLH down 10 percent to 8,1 cents and FML down 12.5 percent to seven cents. TSL dropped 14,28 percent to 30 cents amid reports that prices at the tobacco auction floors have been lower than those obtained last year.

On a positive note turnover for the week improved by 29 percent to $11.7 million up from $9,1 million for the week ending 11 April 2014.

The bulk of the funds were invested in Delta which got $6 million, Econet $1,7 million and Innscor $490,000.

A few stocks also recorded big jumps in prices with ABCH adding 62,79 percent to 70 cents as the price tracked the 82 cents to be offered by Atlas Mara.

NTS and Willdale also put on a solid 58,82 percent and 42,86 percent to close at 2,7 cents.

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