ZSE bull run to continue

HARARE - The Zimbabwe Stock Exchange rebound is expected to continue throughout October after total volumes traded in September went up 127,81 percent to 264,09 million.

In its report for the month of September, equities firm IH Securities (IH) said the relentless bull run was a direct result of a lack of alternative investment classes in the country.

“The bourse saw increased activity, as the extended bull run continued…

“However, given lack of alternative investment classes offering superior returns, we anticipate that the market will continue to trend upwards during the month of October,” IH said.

The market ended the month of September on a very high note, gaining 78,18 percent month on month to end the month at a total market capitalisation of $12,35 billion as the Industrial Index advanced 78,02 percent to 418,39 buoyed by gains in Delta up 94,95 percent, Econet up 73,78 percent and Innscor up 129,30 percent.

The Mining Index was 66,83 percent higher at 122,57 on the back of gains in Bindura Nickel up 104,08 percent, Falcon Gold up 66,67 percent, Hwange Colliery up 43,85 percent and RioZim up 53,85 percent.

Other notable gains were recorded in Ariston up 184,21 percent, African Distillers up 153,73 percent, CBZ up 149,30 percent and African Sun up 125,00 percent.

While significant losses were seen in First Mutual down 17,39 percent, Rainbow Toursim Group down 9,09 percent and CFI down 2,55 percent, the bourse’s turnover surged 560,32 percent to $89,81 million, with average daily trades of $4,28 million realised in the month.

The most significant contributions to total value traded were by Delta, Simbisa and Padenga contributing 20 percent, 14 percent and 10 percent respectively.

Total volume traded went up 127,81 percent to 264,09 million.

IH pointed out that the market was going to continue overheating.

“We reiterate our view that the market is overheating; current prices are generally not supported by fundamentals, as shown by the recent publication of results, which were largely in line with our expectations.

“We believe that the uptick in performance of some counters has already been absorbed at current prices and we have started seeing some profit taking from some investors at current levels,” the analysts said.

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.