Foreigners snap up Econet shares

million shares valued at US$6,6 million.

The transaction executed by IH Securities saw a book over of 1,5 million shares at US380c and an additional 100 000 shares crossing over at US400c.
The deal, which involved foreigners, pushed daily turnover from US$3,5 million recorded on the previous day to US$7,6 million on 9,1 million shares.

Turnover for the month ended at US$4,1 million and volume of shares was at 309 884 181 shares.
Foreign buyers have been buying into Econet and Delta, despite a huge flight of international investors on the exchange due to the pressing global financial crisis.
Investors have been withdrawing their funds from what they deemed risky markets, to invest in markets with less risk, mainly in stable portfolios, such as gold, that has been performing above other market instruments.

Econet’s share price has been struggling in the past three months, swinging between US340c and US380c despite posting a US$74 million after-tax profit for the interim period ended August 2011.
Econet, the first company to declare a dividend in the multiple currency era, declared an interim dividend of US11,8c which represented a cover of 3,7 percent and an annual yield of 22 percent.
Earnings per share for the group closed the six months at US44c, up from US38c recorded in the previous period.

Against this background, the Econet share price failed to trade above US400c before releasing its results.
The last time Econet recorded a significant deal was in April this year in transaction involving 625 000 shares, valued at about US$3,1 million through a special bargain.

The Econet share was then trading at US480c. At the moment, the Econet share is the most liquid on the ZSE and it has continued to attract foreign investors. The mobile phone company is one of the biggest companies on the ZSE in terms of capitalisation as well as revenue.

Meanwhile, the industrial index edged up 0,51 percent to close at 144,98 points on the back of widespread gains.
Old Mutual went up US9,80c to trade at US120c while Seed Co gained US9c to close at US110c. ABCH and Interfin were both US4c solid at US79c and US8c respectively and TPH added US2c to settle at US10c.

Despite the big deal Econet led the shakers with a US20c loss at US380c, Aico Africa with US0,40c to trade at US19,50c and Meikles slipped US0,39c to US20,11c.

 

The resources index up 0,16 percent to close at 115.47 points after RioZim put on US0, 50c to trade at US50c as Bindura, Falgold and Hwange were unchanged at previous trading day’s levels.

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