ZSE weekly review

Published: 12 November 2013

During the week under review, the bourse recorded increased activity with decent volumes recorded in selected counters. Market turnover closed the week up 47.8% to $9.8m on the back of 48.8m shares against turnover of $6.6m on 139m shares for the previous week.

Telecoms giant, Econet recorded significant deals that contributed a total of $5.9m to the total weekly turnover. The industrial index gained 1.2% to 212.45 points on the back of gains recorded in Delta +2.49c, Old Mutual +4cents and PPC +2.99c.

The mining index gained 1.9% as a result of improved bids and closed the week at 51.24 points. Aggregate market cap closed the week up 1.0% w-o-w at approximately $6.0bn. Foreign buying amounted to $6.7m against foreign sales value of $5.6m, recording a foreign net inflow of $1.2m.

The economic outlook remains depressed as delays in the announcement of the budget leaves people directionless and with no clear plan to turn the country out of economic crisis.

The Finance and Economic Development Minister, Mr. Patrick Chinamasa has been in discussions with the International Monetary Fund, World Bank and Africa Development Bank to request for financial support to repay the country's debt.

In our view, Zimbabwe has no capacity to clear its arrears due to continued slowdown in the key sectors of the economy amongst other reasons.

Although the economic growth rate has slowed we believe that there is value in selected ZSE counters, especially for long term investors.

We continue to urge investors to take positions in strong well managed companies with dominant market shares and solid balance sheets.
- Imara Edwards Stockbrokers

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