Enacy Mapakame Business Reporter
The Zimbabwe Stock Exchange (ZSE) mainstream Industrials Index continued on a downward path, albeit at a slower rate as investors became hopeful of a change in economic conditions following the change in the country’s leadership. Analysts also contend this is a price correction as positive sentiment also begins to set in.
Yesterday, the Industrials lost 5 percent to 329,63 on losses in the market’s heavyweights. However, turnover for the day rose 384,63 percent to $12,419 million while volumes exchanged also ballooned 31 percent to 12,87 million shares.
The market’s top capitalised stocks Econet and Delta were the most sought after for the day after claiming 76,56 percent and 16,76 percent of the volume and a combined contribution of 90 percent in value terms.
Foreign buys jumped 35,68 percent to $2,237 million. Trades were, however, still skewed on the sellers side due to wholesale selling by foreigners who are still jittery of the economic conditions. Resultantly, foreign sales rose 465 percent to $4,058 million by close of trade. Total market capitalisation remained on the downside after losing 4,97 percent of value to $9,451 billion.
The equities market had ballooned in the last two months becoming the best regional performer with 267 percent gains as at November 10, 2017 when the mainstream Industrials Index reached 531 level. However, in the past week after military intervention on the country’s political scene, the market lost over $5 billion.
Leading the declines in yesterday’s trades were regional cement maker PPC and dual listed insurance firm Old Mutual both lost 19,97 percent to close trade pegged at $1,76 and $5,93 respectively. Fast food group Simbisa Brands plunged 19,93 percent to 54,25 cents. The quick restaurant service provider is expected to hold its annual general meeting today.
Agriculture implements manufacturer, Zimplow Holdings and crocodile breeder Padenga Holdings retreated 19,9 percent to 6,65 cents and 19,75 percent to 65 cents respectively. Financial services group, Barclays Bank Zimbabwe was the only counter to trade in the positive after adding a marginal 0,36 percent to settle at 5,64 cents.
The Minings Index remained flat at 129,82 level after all the four counters Bindura, Falgold, Hwange and Riozim traded unchanged at 3,92 cents, 2,20 cents, 3,80 cents and $1,20 in that order.