Published: 10 September 2013

The bearish sentiment that has been well established post the election has now dissipated as bargain hunters entered the market in the just ended week.

The industrial index was little changed at 181.76 points after strong trades in small cap stocks and other midtier stocks. Property companies have suddenly become fashionable in the face of uncertainties on the currency that will be in the new dispensation.

To this end MASH was up 13% to USc 3.42 and Pearl was up 13% to USc 3 as investors take strategic positions in case the multicurrency regime is replaced with a local currency. Total value traded was down 7% to $7m with the bulk of money going into Delta ($2.4m), Econet ($1.9m), Old Mutual ($1m) and Innscor ($0.4m).

Foreign participation remains predominantly on the selling side with $1.3m net divesture on the ZSE during the week.

Policy paralysis is now taking root in the economy as business awaits cabinet announcement to formulate business strategies so as to ascertain the direction the economy will take in the next five years. Without cabinet the business community cannot read much into the long-term macroeconomic environment.

The rebound on the market justified our contrarian strategy in the past month and we continue to urge investors to take positions in strong well managed companies that pay dividends.

Companies with defensive qualities like those in the property sector represent good investments in the face of uncertainties surrounding the return of the local currency.  
- Imara Edwards

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