Stock exchange in consecutive decline

Business Reporter
THE Zimbabwe Stock Exchange recorded an eight months consecutive decline after the stock market’s capitalisation ended last month 0,80 percent weaker at $3,6 billion.

The ZSE has shed significantly since January after reaching highs of about $4,7 billion early in the year, but has plummeted due to the retreating confidence in the economy.

Finance and Economic Development Minister Patrick Chinamasa has already revised prospects for 2015 economic growth from 3,5 percent to 1,5 percent citing the impact of poor rains on agriculture, which accounts for 16 percent of GDP.

As such, the industrial index fell 0,83 percent to 130,83 in October after beverages heavyweight Delta eased 1,20 percent to offset gains in

conglomerate Innscor, up 2,46 percent and mobile network operator Econet; 0,19 percent stronger.

As a result, the total volume of shares that exchanged hands during the month compared to transactions executed the prior month fell by 39 percent to close the period in review at 63,7 million.

October turnover fell 25 percent to $12,88 million.

Average daily trades came in at $585 000

with Econet, Afdis and Delta making the biggest contributions to the total volume traded at 25 percent, 24 percent and 13 percent, respectively.

Foreign purchases in the year to date totalled $112 million compared to sales of $109 million.

Meanwhile, during yesterday’s trades, the equities market continued on a downward path as the industrial index retreated by a further 0,51 to close at 130,07 on the back of losses in selected heavyweights.

Giant insurer Old Mutual slid $0,0085 to settle at $2,1915, while Padenga lost $0,0084 to trade at $0,0800.

Beverages producer Delta dipped $0,0075 to $0,8100 while ZBFH decreased by $0,0055 to close at $0,0295.

Another heavyweight, telecoms Econet, conglomerate Innscor and Seed Co were each $0,0025 weaker at $0,2675, $0,5950 and $0,9775 in that order.

Only two counters traded in the positive as cigarette manufacturer BAT jumped $0,0500 to $11,9000 and Hippo dropped $0,0277 to close at $0,3800.

The Minings Index closed at 22,33 after losing 1,24 (or 5,26 percent) on the back of a loss in RioZim, which eased $0,0160 to settle at $0,1040. Bindura, Falgold and Hwange maintained previous price levels at $0,0130, $0,0050 and $0,0340 respectively.