Enacy Mapakame Business Reporter
THE Zimbabwe Stock Exchange’s market capitalisation yesterday reached a four-year high of $6 billion, after the Industrials Index gained 0,24 percent to the 211,69 level.
The local bourse last reached a peak market capitalisation of $6 billion in July 2013. Turnover in yesterday’s trades hit $1,149 million with foreign trades accounting for $86 000. There were no foreign sales recorded.
Medtech Holdings was the day’s top riser after it gained 33 percent to 4 cents while quick service restaurant provider Simbisa Brands added 5,9 percent to 31 cents.
Hospitality group, Meikles rose 4,39 percent to 20,9 cents while Proplastics was 3,9 percent firmer to 6,8 cents. Crocodile breeder, Padenga Holdings also made up the top five risers after it inched 2,14 percent up to 31 cents.
Beverages giant Delta and NMBZ closed on the downside, retreating 0,59 percent to $1,28 and 15 percent to 4,20 cents respectively.
The Minings Index of four counters remained flat at 74,04 level as Bindura, Falgold, Hwange and RioZim remained unchanged at previous trading levels of 2,99 cents, 1,2 cents, 2,6 cents and 60,25 cents respectively.
But market watchers contend prospects for the equities market will remain positive with growth coming through in key sectors such as agriculture and mining, which also employ the bulk of the country’s informal sector. This is anticipated to improve consumer spend and impact earnings in the consumer facing businesses relative to prior year.
Also, the establishment of the Zimbabwe Portfolio Investment Fund announced by the Reserve Bank of Zimbabwe (RBZ) in his 2017 Mid-Term Monetary Policy is also a good signal.
This Fund enables the collection and repatriation of foreign funds related to portfolio equity purchases and sales in a more transparent manner, a move expected to attract more foreign investment on the local bourse.