ZSE industrial index slides

Yesterday’s trading was subdued with only four stocks managing some gains against six that traded lower while 19 remained unchanged from previous levels. Some marginal gains in blue chips – BAT Zimbabwe, Delta Corporation and Old Mutual – failed to offset losses recorded in Econet Wireless, OK Zimbabwe and Seed Co, resulting in the industrials closing in the red for the second consecutive session.

The industrial index slipped 2,15 points to 187,83 points while the mining index of four trading shares was unchanged from the previous levels at 68,12 points.
Daily turnover, however, significantly improved to US$3,25 million from about 12,31 million traded shares compared with US$928 285 on 11,17 million that traded on Monday.

Econet lost US5c to US65c after significant deals worth US$1,1 million as investors continue to recoup profits made in the aftermath of its 10 for 1 share split. Econet has lost 15,58 percent on its all-time best price of US77c.
Supermarket chain OK was US0,10c weaker at US19,9c while Seed Co eased US5c to US65c after publishing a profit warning statement that financials would be lower than last year. CBZ was lower at US1c to US15c while DZLH was US1c lower at US29c. Zimplow, which listed new shares yesterday, remained stable at US4,5c.

Delta recovered US0,5c to US121.5c in deals worth US$619 916, but still remains 4 percent from its best level of US126,01c reached on January 31.
BAT added another US5c to all-time high of US735c. This takes its gains since January 2 to 104,2 percent. Old Mutual, which declared a final dividend of £5,25 in its preliminary results to December 31, 2013 advanced US4c to US224c, another all-time best level.

The Zimbabwe Stock Exchange has performed poorly over the last three years, especially when compared with global markets. Since 2010, the ZSE industrial index has remained flat while the S&P Africa Frontier Index has grown by 19 percent and the S&P Global Index has advanced by 11 percent.
But analysts say the ZSE may record strong gains in the next three years, supported by a more stable political environment and Government’s strong macro-economic policies.