ZSE opens week in the red

HARARE - Zimbabwe Stock Exchange (ZSE)’s benchmark industrial index opened the week softer, shedding 0,16 percent to close at 192,21 points.

The bourse, which has failed to find direction in the new year, was dragged down by losses in blue chip counters. Retailer OK Zimbabwe slipped 0,99 cents to trade at 19 cents while Barclays dropped 0,09 cents to settle at 4,01 cents.

The value of trades fell to $438 591,02 — the lowest recorded value since January 02, 2014.

During yesterday’s trade, the market only saw one riser ? CBZ gaining 0,07 percent to close at 15,01 cents. The mining index was flat at 34,77 points as Bindura, Falgold, Hwange and RioZim maintained previous trading levels.

EFE stockbrokers noted that the market has been slowly deteriorating downwards as it braces for a relatively subdued outturn for the listed companies for the period ended December 2013 despite recovering in the week under review.

“It remains prevalent though, that the gains currently realised on the bourse are without any fundamental support either organic or inorganic. Therefore the volatility is expected to remain dominant with the downside aggregately bargaining in the short run,” said the equities firm. The current mixed trend on the ZSE in our view is a sign that investors are yet to come to terms with the reality of a depressed economy.”

EFE Stockbrokers said the market is expected go back and forth in search of a clear direction.

“Gradually we expect the bourse to yield thus curving in after the reporting season where most companies are likely to report constrained growth in profitability. A rebound is likely in the second half where we believe government will ensure stimulus in the economy if able to fund critical sectors,” said the stockbroking firm.

On Friday, the industrials added 1,72 percent to 192,51 points — on a week on week basis — spurred by a rebounding Delta which cumulatively gained seven percent to close at 127 cents among other stocks.

 

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