ZSE stocks remain unpredictable

on a bearish trend.
ZSE’s most capitalised counters Delta and Econet have been on the decline with Econet hitting lows of US379c on Monday this week.
In the past week, Econet lost US$34,2 million in value and was consequently displaced by Innscor with a value of US$379 million as the second largest company on the ZSE by market capitalisation.
“We do not believe the current trading price is reflective of the strong underlying fundamentals of the business hence this would be a good time to accumulate Delta and Econet shares,” said an equities dealer with a local dealing firm.
At US$912 million, Delta is still bigger than the Econet and Innscor market capitalisation combined regardless of its flat performance.
Speculative and smaller capitalised counters have continued to drive the market as investors shy away from the highly capitalised counters.
Having peaked at an all-time high of US$4,2 billion mid-year, market capitalisation was on the retreat last month to end at US$4 billion, 2,3 percent lower on losses incurred by some heavyweight counters.
Traditional counters constituted the bulk of the market capitalisation with the exception of OK, which was elevated to the elite group on strong earnings after displacing struggling Meikles.
During the past eight months, the resources index with a peak of 160,92 points dropped sharply to 155,66 points as investors were caught in a quandary of competing considerations including the potential in the minerals resources and undercapitalisation of the mines.
The mining index opened the year at 200,41 points and closed last month at 164,52, representing a difference of about 17 percent.
Mining counters have struggled to find firm footing amid recapitalisation and indigenisation concerns that saw Government threatening to withdraw their licences.
However, the industrial index gained 5,7 percent after closing last month at 160,01 points from 150,99 points recorded in January this year.
During the same period under review, a total of three billion shares valued at US$317,4 million were traded on the market.
Foreign portfolios dominated market transactions over the nine months despite foreign investors being sceptical of the indigenisation laws.
As of yesterday, the mainstream industrial index closed the second day of the week 0,10 percent lower at 160,66 points.
Gains for the day were recorded in cement maker PPC which shed US5c to US325c while Hippo was down US2,90c to close at US97c.
Other losses were in Interfin, which dropped US2,10c to US13c, Innscor gave up US2c to trade at US68c and Delta took a US0,50c dip at US77c.
The losses were partially offset by gains in Chemco, which rose by a significant US8c to close at US18c, TA was up US2,99c at US17,99c as Old Mutual moved up US2c to settle at US148c.
Fidelity Life increased by US0,80c to US14c and AICO Africa recovered US0,60c to close at US25,60c.