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Mr Mboweni

Zimbabwe Stock Exchange’s monthly turnover for July increased by 40 percent to $20,3 million from $14,5 million invested in June while dipping 19,4 percent year-on-year from 25,2 million.

In the month of July, $16,8 million was traded through the new Automated Trading System (ATS) which went live at the beginning of the month.

The bulk of the funds were invested into Econet which got approximately $5,9 million, Delta $5,8 million, Innscor $2,7 million and Seedco $1,3 million.

Prices, however, continued to fall and weighed on the overall performance of the market. The main Industrials Index closed the month 3,40 percent lower at 143,35 as a total of 16 stocks closed the month in the red.

According to a report by Lynton-Edwards Stockbrokers, mobile giant Econet was notably down 19,97 percent to 32,01 cents as it battles declining revenues and profitability.

Beverages manufacturer Delta was also on the downside losing 1,48 percent to 99,50 cents.

However, a total of 20 counters recorded gains in the period under review as Seed Co went up 8,4 percent to 102,98 cents. CFI was also one of the top risers, climbing 25,3 percent to 3,12 cents and Innscor put on 4,96 percent to 62,98 cents.

Old Mutual was also up 1,66 percent to 274,5 cents. Other risers included OK Zimbabwe, Hippo and Barclays.

The Mining Index was also 11,15 percent in the red at 39,36.

Finance Minister Patrick Chinamasa last week revised downwards the country’s GDP growth prospects from 3,2 percent to 1,5 percent.

Lynton-Edwards said the market’s downward trend is not expected to change soon as economic fundamentals remain worrying.

“CEOs at listed stocks also echoed the declining economic environment with Delta chief executive Mr Pearson Govero saying focus will be on reducing costs across the value chain as well as asking retailers to also reduce margins.

“This comes after the group recorded a 10 percent revenue decline in the first quarter to June 2015.

“Econet chief executive Mr Douglas Mboweni also reiterated the need to cut costs as top line growth remains under pressure.

“With growth prospects remaining limited, we thus expect local stocks to remain unattractive,” the stockbroking firm said. – BH24.