ZSE volumes quadruple

Published: 06 November 2013

THE number of shares that exchanged hands on the Zimbabwe Stock Exchange (ZSE) last month more than quadrupled to 602 947 421 as the local bourse continued to rally after a record post‒election dip, official figures have shown.

During the period under review, turnover rose to $44,5 million from $37,6 million recorded in the prior month, driven by renewed interest in highly capitalised companies.

The industrial index also advanced to 209,74 points from 200,04 points.

The figures show that 123 897 738 exchanged hands in September.

Analysts attributed the subdued performance in September to the wait-and-see attitude which came after the President Robert Mugabe.

Earlier on in August, the industrial index plunged 25,64 points to close at 205,57 points on the back of losses in heavyweight counters as uncertainty gripped the local bourse following a dispute over elections.

Former Prime Minister Morgan Tsvangirai had described the polls as a sham challenging the outcome in courts. He later withdrew the challenge.

The property sector was the top performer during the last week of the month firming by 4,19 % to 129,17 points on the back of gains in Dawn (28,83%) to 1,45 cents.

The Tourism sector was the week's worst performer, shedding 3,83% to close at 27,86 points driven by losses in the price of RTG, (13,33 %) to 1,30 cents.

Analysts say consumer facing companies are expected to drive the local bourse as the third quarter earnings season begins.

"Equities are likely to remain the asset class of choice as the prospects still remain promising.

"The Zim market may trade on the backfoot this week as demand for Zim assets continues to weaken ahead of the 2014 national budget pronouncement which has been delayed to either December or January," MMC Capital said in a weekly markets update.

Government is expected to come up with an expansionary budget that will stimulate the faltering economy.

"We maintain our overweight rating on agro-stocks in particular Hippo and Seedco, while we are also bullish on Innscor, Edgars and Delta in the consumer–oriented and retail space," read the report "On the manufacturing space we have an overweight rating on Lafarge, PPC, Natfoods and BAT
- newsday

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