ZSE turnover  up 22pc in October The current positive sentiment on ZSE is likely to continue on the back of pro-business policies from the country’s new leadership
ZSE

ZSE

Enacy Mapakame Business Reporter

THE Zimbabwe Stock Exchange mainstream industrial index rose 22 percent to 120,82 in October after seeing increased interest from local investors seeking a safe haven due to jitters around the introduction of bond notes.This becomes one of the biggest monthly gains in the year which subsequently reversed year-to-date losses to gains of 5,9 percent, making the ZSE the best performer YTD in the region, according to African Financials.

The resources index of four counters — Bindura, Falgold, Hwange and RioZim, was 26 percent firmer to 33,76, its highest close since September 2015. Year-to-date, the mining index is 42,32 percent firmer.

Total market capitalisation grew 22 percent to $3,328 billion from $2,725 billion recorded by close of September.

Month-on-month, turnover improved 91 percent to $23 million compared to $12 million in September. A total of 170 million shares exchanged hands in the month of October, representing a 220 percent increase from prior month’s 53 million shares.

A total 31 counters closed October in the positive. Of these, 23 recorded double digit growth.

Trades were dominated by top cap counters, Delta, Econet, Innscor, Axia and CBZH.

Delta which rose by 21 percent in the month contributed $10 million of month’s total turnover.

Further gains in the beverages maker, which is also the biggest stock by market cap were however offset by negative news in the month.

Delta last month reported total revenue for the second quarter to September 2016 fell 6 percent compared to same quarter prior year.

The company also announced The Coca Cola Company had advised of intentions to terminate its bottler’s agreement with Delta.

Econet, Innscor and Axia were among top traders of the month contributing $3,2 million, $2 million and $0,9 million respectively to total turnover.

Both Econet and Axia were also among top movers of the month gaining 53 percent and 66 percent respectively.

The telecoms giant however, closed yesterday trading 10 percent weaker after reporting profit for the half-year to August 31, 2016 fell 37 percent to $14,9 million on depressed revenue due to the challenging economic environment.

Other notable gains for the month were recorded in Bindura, which led risers up 66 percent to 2 cents, Zimpapers up 60 percent to 0,8 cents and OK Zimbabwe which rose 42,34 percent to 4,8 cents.

The retail giant is expected to release its financials today which market watchers believe will mirror the depressed economic environment.

However, the month was not shot of bears as six stocks closed October weaker. Biggest losses were recorded in Truworths which fell 33 percent to 0,5 cents after reporting a $1,34 million loss for the year to July 2016.

Other stocks to fall were Ariston down 22,22 percent to 0,35 cents, Dairibord which lost 16,67 percent to 3 cents and Pearl Properties which was 9,09 percent weaker to 1,8 cents.

Nicoz Diamond and Powerspeed also made up the top five losers weakening by 6 percent and 0,45 percent respectively.

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