ZSE tops among regional bourses

HARARE - The Zimbabwe Stock Exchange (ZSE) remains the biggest bourse by market capitalisation in sub-Saharan Africa.

According to the Central African Stock Exchanges (Case) handbook launched recently, the local bourse is ahead of the Botswana, Malawi and Zambia stock exchanges.

Despite depressed trades since mid-last year, characterised by erosion in value of shares, the ZSE’s total market capitalisation closed 2013 at $5,2 billion.

It was closely followed by Botswana with just under $5 billion.

Zambia’s Lusaka Stock Exchange closed the year with a market capitalisation of $4,1 billion, with Malawi’s bourse trailing behind at $1,2 billion.

Zimbabwe-based listed beverages maker Delta Corporation (Delta) maintained its dominance in the region as the highest valued company during the period, with a market capitalisation of $1,7 billion.

Botswana-listed FNB followed with a value worth $1,18 billion.

Mobile operator Econet Wireless Zimbabwe ranked fifth out of the 123 companies profiled in the handbook with a market capitalisation of $545,6 million as at December 31, 2013.

Phillip Chiyangwa’s Zeco Holdings was the least ranked, with a market capitalisation of $46 000.

The Case handbook has increasingly become a book of record, where companies have an opportunity of showcasing their assets and provides an aggregate information resource.

It is the only single source of information that lists the most recent financial results, the 2013 share price performance and volumes traded.

This comes as more delistings loom on the ZSE this year, according to a report in the handbook.

A record 12 companies departed from the local bourse on the back of slackening economic growth and depressed financial performance, among other challenges.

“…it is possible that at least two other companies will delist this year,” the report said.

In April, agro-focused firm Chemco delisted after having applied for voluntary suspension in 2012.

Apex Corporation, one of the oldest counters on the bourse, was struck off the ZSE’s register in July last year after applying for voluntary suspension a month earlier while it was under judicial management.

In December last year, horticultural concern Interfresh delisted following its shareholders’ approval to voluntarily leave the bourse.

The group argued that its shares had consistently traded at a discount to net asset value and raising capital at the current valuation on the ZSE had “proved rather limiting”.

The case report, which noted that Zambia was the only market to record a listing in the region last year, said Tawanda Nyambirai’s Lifestyle Holdings delisted on June 10 last year, having been suspended from trading in April the same year.

The furniture manufacturing company has since been experiencing rapid down-sizing over the past year and has closed 12 branches whilst retrenching an unspecified number of its 1 420 employees. Financial group Trust Holdings voluntarily delisted in November.

Food processor Cairns Holdings (Cairns) also left the bourse after a suspension while Gulliver Consolidated delisted in June 2013 for

failing to produce financial statements within the required period. In June last year, ZSE opted to delist Steelnet after the High Court granted a final liquidation on May 8.

Comments (3)

What about SA and Nigeria, not to mention Kenya?

angel - 27 May 2014

Irrigation Answered: • Irrigation Systems Design and Installations i.e. pumping plants (mobile & fixed) , network of pipelines (steel pipes, AC pipes, PVC pipes, polypipes, Aluminium pipes & G.I pipes) • Infield supplies i.e. sprinklers & Aluminium pipes and fittings • Water Tanks and tank stands • Boreholes (Monopumps- BH range, Submersible pumps ) • Supply and Maintenance of all Irrigation equipment • On & Off-site fabrications • FREE detailed Agronomic advice to suit your crop requirements! Call Cell ................................................ 0773 528 045 0715 415 931

WATER - 27 May 2014

The writer of the article confuses Sub-Saharan Africa with SADC. The ZSE will not even be top in SADC. South Africa, Tanzania, Mauritius (and I couldn't be bothered to do a research for each country), but clearly...even if we take south Africa out, it's clear some journos are lazy at desktop research. I saw a similar story in the Herald sometime past, but to replicate such stories without questioning the facts? (shacking my head)

VoidHead - 28 May 2014

Post a comment

Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
- Editor

Your email address will not be shared.