ZSE turnover slumps 30pc

HARARE - The Zimbabwe Stock Exchange (ZSE)’s monthly turnover slumped 30 percent to $35,9 million in May from $51,3 million realised prior month, indicating depressed activity on the bourse.

According to latest ZSE statistics, average market capitalisation for the period marginally increased to $4,5 billion from $4,47 billion in April.

In May, foreign buys stood at $21,8 million, down 32 percent from $32,1 million.

Foreign buys were $49,8 million in January 2014. During the month under review, shares sold by foreign investors decreased by 11 percent to $24 million from April’s figure of $27,2 million – all-time high year to date –  resulting in a net foreign outflow position of negative $2,2 million.

In March, the value of shares sold by foreigners stood at $14 million.

Relative foreign contribution to turnover was marginally down in May at 61 percent compared to 63 percent in prior month, indicating a general plunge in overall spend.

The equities market’s mainstream industrial index firmed a marginal 1,15 percent month-on-month in May to close at 174,89 points while spontaneously narrowing its year to date loss to 13,47 percent.

However, year-on-year the index was 18 percent worse off.
Financial advisory firm EFE Securities said despite the upsurge in the price levels, May’s trading patterns were largely adverse, an indicator of a weakening market barring externalities.

“The monthly rebound is against a first quarter dearth which was preceded by a further shrinkage in April as the outlook remained predominantly murky,” it said.

In the month under review, Zimplow was the top gainer on a technicality emanating from a share consolidation.
Batteries and stationery maker Art Corporation added 300 percent to 0,4 cents after the group committed $1,8 million in capital expenditure.

Furniture retailer Pelhams went up 100 percent to 0,02 cents while Hunyani added 73,55 percent to 2,1 cents.

Hunyani reported a depressed set of financials where revenue softened by nine percent to $18,97 million leading to an operating loss position which compared to a profit in comparable period.

Mwana Africa’s Bindura Nickel Corporation soared 63 percent to 2,2 cents amid a projected 60 percent increase in production. — Business Live

Comments (2)

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we do it - 11 June 2014

what does this Zimbabwe Stock Exchange figures reflect.

MOYU - 11 June 2014

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