ZSE turnover hits $51m

HARARE - Zimbabwe's equities market monthly turnover surged to $51,3 million in April 2014 from $28,8 million realised prior month.

According to latest statistics from the Zimbabwe Stock Exchange (ZSE), the April turnover is the second-highest after January’s $63,9 million.

Market analysts say both months’ turnover were spurred by exclusive special deals in SeedCo’s completion of a buy in by French seed producer Vilmorin & Cie.

In April, foreign buys were at $32,1 million compared to $14,4 million in March while they stood at $49,8 million in January.

Shares sold by foreign investors in the month under review increased to $27,2 million, an all-time high for the year, from $14 million in March.

In January, the value of shares sold by foreigners stood at $24 million.

The average market capitalisation for April stood at $4,4 billion, down from $4,8 billion in January. February’s average market capitalisation was $4,9 billion.

This comes as the market capitalisation slumped by $642,8 million to $4,56 billion in the first quarter to March 2014 as stock prices plummeted, according to a AfraAsia Holdings Zimbabwe Limited (AfrAsia) report.

The financial group said the slackening economic growth and disappointing 2013 companies’ performance earnings contributed to weakening stock prices across the board.

“The equities market has also been affected by delistings and suspensions which peaked in 2013 as companies faced mounting viability challenges,” said the report.

The bourse’s mainstream index closed the quarter 12,76 percent lower at 176,32 points whilst the resource index dropped 35,55 percent to 29,51 points — the lowest since 2009.

AfrAsia noted that the stock market took a knock soon after July 31, 2013 and since then has struggled to find traction.

Following the polls, the bourse lost nearly $1 billion in a week with market capitalisation plunging 15,68 percent to $5 billion from $5,96 billion.

“Overall turnover for the quarter was down eight percent to $118,7 million from the previous quarter turnover of $128,8 million as foreign investors buying declined by four percent to $79,4 million from $82,7 million,” AfrAsia said.

Net buying — foreign buys less foreign sales, increased to $32 million during the quarter from $14,8 million as at December 31, 2014.

Foreign buying as a ratio of total turnover also went up to 67 percent in the first quarter of this year from 64 percent in the last quarter of 2013.

“The continued support by foreign investors on the ZSE is coming from the continued use of the multi-currency regime and the potential upside on selected stocks,” AfrAsia said, adding that foreigners targeted bellwether stocks like Delta, Econet and Innscor with relatively strong earnings, cash flows and balance sheets.

Small and medium capitalised stocks dominated the movers during the period under review.

 

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