'ZSE bearish trend to persist'

HARARE - The Zimbabwe Stock Exchange (ZSE)’s main industrial index ? which opened 2014 in the red — is expected to continue on the downward trend in the short-term due to absence of policy direction and limited
foreign investor participation, TFS Management Company (TFS) has warned.

The research and asset management firm, a subsidiary of financial group Tetrad Holdings, said it maintained its view that the market may continue to trade sideways for the next couple of weeks.

“The absence of concrete short-term measures to stimulate economic activity from the recently published 2014 National Budget also supports our view for the local market,” it said, adding that they, however, believed that “offshore investors may begin accumulating selective large caps as some of them remain attractive on a regional peer basis.”

This comes as the local bourse, which registered its biggest gain since dollarisation in 2013 as it closed the year 32,62 percent higher, recorded losses in the first two trades of 2014.

On the first, only one counter out of the 74 listed traded in the positive.

Last Friday, the benchmark industrial index shed 0,47 percent to close the holiday shortened week at 201,04 points.

Weighing on it was Delta which retreated -1,43 percent to 138 cents with a paltry volume of only 2073 shares exchanging hands while multi-listed Old Mutual eased -1,19 percent to close at 250 cents putting downwards pressure on the index.

However, there was no activity in the mining’s cluster with only a noticeable lower bid put on the board for RioZim at 32 cents, the mining index therefore closed flat at 45,79 points.

On Thursday — the bourse’s first in 2014 — the equities market opened the year  in the red with only one counter trading in the positive as the benchmark industrials index shed 0,06 percent to close at 201,99 points while the mining indicator traded flat at 45,79 points as resources counters maintained previous prices.

Meanwhile, activity on the bourse remained low with only nine counters active of which three closed the week in the red against two which closed in positive territory.

Meikles notched 5,26 percent to 20 cents after it was revealed that its Meikles Stores entity was planning to use the rescinded $1 million retrenchment package in reconfiguring its business.

Tobacco processor’s BAT marginally gained 0,08 percent to 1201 cents with furniture and home appliance retailers Pelhams topping the fallers after shedding 50 percent to 0,05 cents.

Market turnover slightly picked up advancing 171,28 percent to $0,9 million largely pushed by trades in conglomerate Innscor which contributed 62 percent of the total market turnover as 707,583 shares exchanged hands at 80 cents with CBZ chipping in at 16,9 percent.

Daily volume traded significantly improved to 1,89 million shares with banking group CBZ continuing to top as the highest contributor in two days running at 55 percent fairly closely followed by retailer Innscor Zimbabwe at 38 percent.

Foreign interest remained subdued with buyers at $0,094 million and sellers at $0,324 million with CBZ and Old Mutual being the preferred stocks.

Comments (1)

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Real - 7 January 2014

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