ZSE rebounds, gains $1 billion

Published: 30 November 2017

THE Zimbabwe Stock Exchange (ZSE) rebounded this week, gaining a billion dollars since Thursday last week.

The ZSE market capitalisation gained $1,17 billion during the week recovering from a $5,7 billion loss in the previous week. An analyst said last week's losses were just a "huge shock".

Markets tend to experience shocks in turbulent times. Last week Robert Mugabe resigned as president of Zimbabwe after a 37-year reign which many have tied to the economy's deplorable state.

An analyst said a normalisation is however, still pending as the equities are still overvalued.

"The market should self-correct sustainably once we start seeing concrete economic progress," the analysts said.

The industrial index gained 12,58 percent during the week since Thursday to close yesterday at 371,09 points buoyed by gains in heavyweights.

Delta gained 57,39 percent week on week to close trade at $1,9809. Econet put on 37,12 percent during the week to trade at $1,1795 and SeedCo picked up 5,55 percent to close at $1,7644.

Offsetting the gains in the industrial were losses in selected blue chips. British American Tobacco lost 0,14 percent during the week to settle at $36,95. Innscor dropped 15,38 percent to trade at $1,1 and Simbisa lost 9,99 percent during the week to close at $0,4883.

The mining index lost 2,4 percent during the week to close yesterday at 126,71 points following losses in Bindura Nickel Corporation and Riozim of 9,44 percent and 0,17 percent to close at $1,198 and $0,0355 in that order. Falcon Gold and Hwange Colliery remained unchanged at previous price levels.
- fingaz

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