Imara Edwards Securities weekly review

Published: 08 October 2013

The industrial index gained a whopping 5.2% to close the week above the psychological mark of 200 points at 208.35 points. The week saw a flurry of activities with special bargains dominating trades.

Volume traded grew by 38% to 281.8m resulting in value trades of $20.3m. During the week three special deals stood up namely 1.2m TSL at 32 cents, 4.5m Econet at 61.96 cents and 294.7m Dawn Properties at 1.47 cents.

Mid-tier stocks were behind the surge in the index led by Padenga (+33%), ZBFH (+33%), Meikles (+28%), Colcom (+20%), Truworths (+20%), BATZ (+19%) and NMBZ (+14%). The mining index also gained 1.3% to closed the week at 50.53 points after strong trades in Hwange (+11%).

Sentiment across African bourses remains positive with a total of 7 bourses trading in the positive while 4 bourses traded in the negative. The ZSE was the best performing stock market during the week after adding 5.2% followed by the Tanzania bourse which gained 4.8%.

On a year to date basis the illiquid Malawian stock market led with a gain of 76% followed by the Ghanaian stock market which gained 68% and the ZSE is third after gaining 37%.

During the last quarter of the year we expect the announcement of the national budget in November and for companies with a September year end we expect them to report from Mid-October onwards. We also expect Econet to report its numbers in the not so distant future given that the company has an August year end and Delta will be coming soon with its half year to September 2013.

These two stocks contribute close to 40% of the total market cap and their fundamental performance mirror the overall performance of the ZSE industrial index.
- Imara Edwards

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