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Foreign buyers have continued to dominate the market mainly in heavy-weight counters such as Econet and to a certain extent beverages firm Delta.
By virtue of special bargain deals, Delta was the most liquid counter in January with an average weekly turnover of US$4,8 million
The most illiquid counters were Astra, Cairns, Chemco, GB, Phoenix and Zeco, which did not trade.
The market is expected to remain subdued due to liquidity shortages, negative perception on the country’s equity laws and the effects of the euro debt crisis.
The mainstream index is expected to remain flat in the first quarter of the year mainly due to uncertainty in economic policies and the euro debt crisis.
The market has been recording gains from last week but could not sustain the upward trend as foreign investors who prop up the market have restricted themselves to a few selected counters. The Zimbabwean market reacted negatively to the euro debt crisis last year and the influence has continued this year.
Lately the market had appeared unmoved by news from Europe but this appears to have changed as foreign investors have started restructuring their portfolios.
The generally low liquidity situation in the economy is expected to continue in the year and is likely to be the major reason for the poor performance of the market. Last year the main industrial index lost 6 percent to close the year at 142,90 points while the resources index shed 50 percent to cap off at 100,70 percent.
Yesterday, heavyweight counters lifted the industrial index, opening the week solid gaining 0,40 percent at 140,27 points.
Milk processor Dairibord added US1,30c to trade at US18,50c. Old Mutual rose US1,01c to US166,01c while Meikles edged up a cent to 17 cents. Other gains were in AICO Africa that is trading under a cautionary statement in view of a possible transaction with Olam pushing US0,98c to close at US17,98c as Colcom went up US0,90c to trade at US33c.
For the day, notable losses were in Fidelity Life, which shed US0,50c to settle at US17,50c.
The resources index reversed last week’s gains, shedding off 1,71 percent to close at 81,24 points after Hwange dropped a cent to US28c.
RioZim was unchanged at 40 cents, Bindura gained US0,10c to trade at US2, 10c while Falgold was bid higher at US7,50c. Rio Zim, one of the worst performers of last year, started gaining ground last week on
news of a US$35 million capital injection to clear its debt and fund operations.
Last week the counter gained 14,29 percent at US40c but did not record any trades yesterday.
Online Reporter