Zimpapers Logo

Few investors are churning their portfolios at the moment on the ZSE

Business Editor
Few investors on the ZSE are offering their shares for sale and with very small changes in prices there are even fewer trying to churn their portfolios.

The only group affected by the fall in trades are stockbrokers who earn their income by buying and selling shares for others, regardless of whether those they act for make or lose money through trades.

Concerns are now being raised on the viability of some stockbrokers in light of the declining trade volumes which have left the majority of them scratching around for business

The average trading session at the moment is no more than 15 minutes.

As a result of investors hanging onto shares, activity on the ZSE reached a new low as aggregate turnover closed at $33 573 in Monday’s session; the first day of the week is usually quieter than other days.

Only five counters exchanged hands with two losing ground while a single counter was notched upwards.

At the same time turnover in the five months to April dropped 40,65 percent from the comparable year ago period to $122,21 mil- lion.

There was, however, an almost even split between local and foreign trades with the latter at $63,79 million.

There was a sharp drop in foreign trades from the $133,4 million recorded last year. Concerns are now being raised on the viability of stockbrokers in light of the declining trade volumes which have left the majority of them scratching around for business.

The average trading session at the moment is no more than 15 minutes.

In yesterday’s trades demand in heavies withered sharply in a typical week opener which is usually characterised by low volumes.

Delta, Seed Co and Old Mutual were the only active heavies which is a sharp decline from Friday where a total of seven of the top 10 capitalised stocks on the ZSE exchanged hands.

Delta contributed 15 percent to turnover while Seed Co which was the top contributor turned over 25,552 shares worth $22 996.

Delta trimmed a marginal -0,1 percent to close at 105c while Seed Co was stable at 90c. Truworths lost 13,3 percent to close at 1,3c while Padenga which was the sole riser added 5,6 percent to close at 9,5c.

Fidelity was bids only at 6,5c after reporting that they have sold 4 100 stands at Southview Park year-to-date though they cited rain related challenges earlier in the year.

Masimba which reported a mixed performance in the first four months closed bids and offers only at 2c and 2,5c respectively.

The group’s plastics business which will now be unbundled recorded a 7 percent growth in volumes while turnover for the construction business shrunk -35 percent.

The mainstream index closed 0,07 percent firmer at 153,08 while the mining index closed stable at 44,45.