ZSE market capitalisation surges to $5.4billion

Published: 24 September 2013

THE Zimbabwe Stock Exchange market capitalisation rose by 1,8 percent week on week to $5,44 billion last Friday on mixed trading in heavyweight stocks.

The market capitalisation growth represents 24 percent increase since the beginning of the year after the ZSE main industrial index closed last week 2,2 percent higher at 192,53 points.

There was mixed trading in heavyweight stocks, with Delta falling 0,07 percent to trade at US55,07c, Innscor remaining unchanged at US89,91c and Econet gaining 2,82 percent.

Hunyani put on 40 percent to close at US3,50c, Turnall gained 25 percent to trade at US5c while Riozim jumped 23,86 percent to US5c to rank as the top gainers of the week after.

Natfoods surged 5c to close at 230c, Econet gained US3c to trade at US55,01c and Old Mutual put on US2,01c to settle at US230,01c. Other gains were in PPC up US1,06c to US236,06c, Delta and Fidelity Life added a cent each to close at US120c and US12c respectively.

PG Industries US0,1c, Zeco US0,06 and Masimba US0,06 recorded the most significant losses during the week after going down by 66,67 percent, 40 percent and 22,22 percent respectively.

Lafarge came off US4,99c to US115,01c and Masimba dropped US2c to settle at US7cts. ZHL was US0,10c lower at 1c; Starafrica and Willdale lost 0,05c apiece to 1,20 c and US0,25c respectively.

The mining index however closed the week 0,7 percent lower at 48,34 points. Bindura and Falgold were unchanged at US2c and 10 cents respectively. Gold miner Riozim gained 1,01c to trade at US26,01c. Week on week the ZSE mining index lost 0,39 points.

Volumes traded and turnover totalled 29,67 million shares and US$6,84 million espectively. Share volumes averaged 5,93 million shares per day. Average daily value traded was US$1,37 million for the week. Trades were dominated by Delta, Econet and Innscor contributing 53,08 percent, 13,16 percent and 11,02 percent of turnover respectively.

In comparison to other regional stock market, Zimbabwean stocks have performed exceptionally well for a country still battling to shake off the impact of a decade of economic meltdown.

The decade to 2008 was rocked by hyperinflation and economic contraction, but while challenges still haunt the economy recovery has been impressive since dollarisation in 2008.

A greenback dominated multicurrency regime has resulted in Zimbabwe having one of the lowest inflation rates in the world, which augurs were for its economic recovery.

Zimbabwe's annual inflation rose for the first time in seven months, up 0,03 percentage points to 1,28 percent from 1,25 percent. Month on Month inflation rose to 0,15 percent from 0,38 percent in July.

The headline figure is still in line with the expected inflation average at year end of 3,9 percent.
- herald

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