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Business Reporter
THE Zimbabwe Stock Exchange industrial index declined 21,99 percent in August to close at 181,71 points with all heavyweight stocks taking major knocks. The index fell as heavyweights Delta, Econet and Innscor registered losses for the month of 26,67 percent, 27,94 percent and 21,90 percent respectively.
Mobile phone operator Econet closed the month of August at US48c as beverage manufacturer Delta dropped to US110c and retailer Innscor fell to US83,4c. Mid cap counters also took a battering in August as OK Zimbabwe fell 30 percent to US22c, BAT dropping 29,92 percent to US1 000c and Dairibord retreating 30,11 percent in the period under review to end the month at US19c.
Financials could also not escape the great trek southward with Barclays plunging 47,69 percent to US60c, FBC dropped 20 percent to US9,6c NMBZ fell 11 percent to US8c while CBZ retreated 10 percent to close at US14c.
While all heavyweights, mid capitalised and financial stocks all headed southwards the biggest losses in August were recorded in Barclays, Pioneer down 54,02 percent to US4c and Aico Africa which slid 40,08 percent to US4,5c.
The top gainers of the month were Phoenix up 50 percent to US0,75c, Art Corporation rising 25 percent to US0,5 and ABC jumping 20 percent to US60c.
The market declined by a significant 21,66 percent to close the period under review at a total market capitalisation of US$6,56 billion (including the foreign register), representing17,15 percent growth since the beginning of the year.
Turnover rose 27,06 percent to US$54,24 million in August. Delta dominated trades accounting for US$14,46 million worth of shares.
Econet was the second largest contributor during the period, trading US$13,99 million worth of shares while CBZ contributed US$10,87 million of turnover.
Equities research and analysts IH Securities said the harmonised elections dominated the market in August with foreign investors mulling over the results. Globally, most foreign investors take cautious positions on the market weighing possible policy direction and the impact thereof on the country’s economy.
At this point, President Mugabe has not announced the new Cabinet, but is expected to do so by the end of this week after the swearing in of Members of Parliament yesterday.
Financials released during the month continued to signal tight operating conditions, with top-lines flattening and in some cases declining. A few key counters, including Innscor and National Foods are yet to release their financials.
“We expect those results to continue to reflect weak demand in the economy, likely keeping the market subdued for the month of September,” said IH.
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