ZSE weekly review

ZSE weekly review
Published: 01 October 2013
The industrial index is on course to reverse the post election losses after gaining 2.8% during the week to close at 197.97 points and the 200 psychological mark is insight.

Overall performance was driven by blue chip counters Econet (+12.7%), TSL (+16.7%), Natfoods (+6.5%), BATZ (4.6%) and OK Zim (+3.9%).  Padenga was also up 5.3% after releasing a sterling set of financials during the week. Total value traded was up 116% to $14.7m on volumes of 41.3m shares.

The bulk of the money was invested in Delta at $11.3m, Innscor $1.3m, Dairibord $0.7m, CBZ $0.6m and Econet $0.4m. The mining index also gained 3.2% propelled by gains in RIO Zim (+25%). The mining index is thriving on very thin volumes as investors shun the sector.   

The imminent closure of the US government continue to send shock waves across global markets with the all major indices in the red ahead of the 01st  of October 2013 deadline.

The closure of the US government will have significant impact on the budding growth in the American economy and this will negatively impact the global demand for most commodities. However, regional markets in the sub Saharan Africa continue on the upward trend except for the terror stricken Kenyan economy.

The June reporting season officially closed on 30 September 2013 and companies reported a mixed set of numbers. Going forward we expect companies with September year end and interims to report starting mid October into November.

We expect companies with strong balance sheet and cash flow generation capabilities to do well while those undercapitalised not so well.  
- Imara Stockbrokers
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