adminThe mining index recorded a 26,82 percent rise up to 96 points, paring losses for the year to 4,67 percent.
“Improved earnings at half year as well as the deferment of elections to next year helped sustain the positive momentum in the third quarter. Reduced selling by foreign investors also helped reduce the downward pressure on prices,” said the financial institution in a commentary.
The industrial and mining indices had shed 9,53 percent and 24,83 percent in the second quarter respectively.
However, turnover was affected by the mid-year liquidity crunch as it fell by 28 percent to $100,3 million from the previous quarter.
Foreign buying increased slightly to $54,8 million in the third quarter compared to $51,9 million in the previous quarter while sales by foreign investors declined to $27,7 million from $41,7 million during the same period last year.
In separate interviews, economic analysts who preferred not to be named said the deferment of the general elections to March next year improved activity on the stock market.
“Generally, investors tend to respond to political sentiments and this explains why the stock market was on the low following political sentiments that elections will be before the end of the year. Despite the political sentiments, the remarkable comeback of the stock market is also attributable to improved earnings on the ZSE in the second quarter. A decrease in selling by foreign investors also contributed to the positive performance of the stock market,” said an analyst.
Trading on the Zimbabwe Stock Exchange yesterday opened the week with the industrial index pushing up 0,26 points (0,17 percent) to close at 152,05 points during a mixed trading session.
AICO Africa was up 1,60 cents to 16,10 cents, Delta rose 1,50 cents to 85 cents and TA Holdings added 0,90 cents to 12 cents.
AFDIS and Zimplow advanced 0,30 cents to trade at 21 cents and 5,30 cents respectively. DZLH inched up 0,26 cents to trade at 17,01 cents. Nicoz Diamond and Star Africa gained 0,10 cents to settle at 1,50 cents and 2,10 cents respectively.
However, Lafarge and NatFoods retreated 10 cents to trade at 80 cents and 130 cents respectively. Hippo slipped 3 cents to 112 cents and SeedCo dropped 1,11 cents to 92,61 cents. African Sun, Barclays and Econet were 0,10 cents weaker at 0,80 cents, 2,90 cents and 475 cents respectively.
In mining, the index was on the rebound gaining 0,69 points (0,79 percent) to close at 87,99 points. RioZim pushed up 2 cents to 63 cents while Bindura eased 0,01 cents to settle at 2,99 cents. Falgold and Hwange remained unchanged at previous trading levels.
Online Reporter