ZSE turnover falls 48,6pc In September the industrial index fell 1,1 percent to 195.25 on heavy losses across the board
In September the industrial index fell 1,1 percent to 195.25 on heavy losses across the board

In September the industrial index fell 1,1 percent to 195.25 on heavy losses across the board

Martin Kadzere Senior Business Reporter—
TURNOVER on the Zimbabwe Stock Exchange fell 48,6 percent in September to $34,1 million from $66,4 million a month earlier, according to statistics from the exchange. The high turnover in August was largely driven by special deals, notably the Atlas Mara offer to minorities’ transaction, ZSE chief executive Mr Alban Chirume said yesterday. “In August there were a number of special bargains,” he said.

“In particular, as part of the Atlas Mara offer to minorities transaction — $38,05 million worth of ABC Holdings shares were traded as a special bargain.
“If you remove this turnover, you will realise that the underlining August turnover was $28,34 million as compared to $34 million for September. If we use a simplistic analysis and eliminate once-off transactions, the normal turnover increased,” Mr Chirume added.

He also noted that basing on the special bargain, the reported drop in turnover from $66,4 million to $34,1 million is consistent with the current depressed trading levels.
Mr Chirume said listed companies have continued to be negatively impacted by the current economic environment resulting in the weakening of their financial positions.

“This makes the shares less attractive to investors, especially foreign investors who have a choice to invest on other exchanges,” said Mr Chirume.
“We have seen a reduction in the activity of foreign investors who have been driving the equities market. Local investors continue to experience liquidity challenges to invest in listed equities.”

During the month of September, the ZSE indices fell with the mining index recording a significant 10,27 percent drop, statistics compiled by Africa Financials show.
The mining index, which breached a psychological 100-level mid August, lost 10,62 points to close at 92.62 on Tuesday from 103 on September 1.

During the month, the industrial index fell 1,1 percent to 195.25 on heavy losses across the board.
Top monthly traders were Econet Wireless whose value of trades amounted to $7,64 million.

The shares of the company gained one percent to 77c. On the second spot was Delta whose value of trades amounted to $5,33 million but dropped 5,5 percent to $1,29.
Shares worth $4,9 million changed hands in CBZ Holdings and the stock gained 8,8 percent to 13,05c while shares valued at $4,28 million also changed hands in Innscor Africa. However, shares in Innscor declined 10,6 percent to 57,5c in September.

Shares valued at $2,65 million were traded in Astra but the company’s shares fell 2,7 percent to 6,21c.
Construction company, Masimba Holdings was the top riser after gaining 73,33 percent to 2,6c.

Masimba managing director Mr Canada Malunga said order book for its construction division was strong at $41 million.
However, the significant portion of the order book at $19 million remains inactive due to customer’s funding constraints.

Zimplow was up 60,25 percent to close at 6,41c. The company signed two asset based finance facilities worth $10 million to enhance capacity at the group’s tractor division.
Furniture retailer Pelhams Limited gained 50 percent to 0,03c after securing $3 million from a local financial institution for restocking.

Ariston Holdings rose 42 percent to 1c while meat processor Colcom closed the month at 30c after gaining 36,4 percent.
Radar Holdings was the biggest faller after plummeting 40 percent to 3c. Radar said yesterday the de-merger of Border Timbers would allow for a clear operational focus which is attractive to investors and would enable the group to pursue independent direction.

The de-merger was necessitated by different financial needs and sectorial focus of each business.
Brickmaker Willdale also fell 40 percent to 0,15c. Turnall Holdings declined 30 percent to 2,1c, Pioneer lost 25 percent to 3c and Dairibord fell 33,1 percent to 10c.

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