The Sunday Mail
Enacy Mapakame Business Reporter
ANALYSTS believe that gains that were recorded on the Zimbabwe Stock Exchange in the days leading to the Workers’ Day holiday might be short-lived if the illiquid conditions persist.
Last week, the local bourse consolidated gains that began on April 23 as heavyweight counters led the recovery.
After close of trade on Wednesday, the mainstream industrial index was up 3,7 percent at 172,85 points from six days earlier.
Minings climbed 2 percent or 3,36 points to 29,64 points.
However, on a year-to-date basis, the main index has declined 15,2 percent, while the mining index has dropped 35,3 percent.
The market capitalisation had risen to US$4,5 billion by Wednesday.
Foreign buys accounted for US$881 698 of the US$2,2 million market turnover.
In the three days to Wednesday, heavyweights rose faster. Delta gained US4 cents to US115 cents.
Econet recovered US3 cents to 62 cents while Innscor inched up US0,50 cents to US63 cents.
On Monday, TA gained 8,3 percent despite reporting a loss of US$5,6 million in the full year period to December 31, 2013 from a profit of US$3,2 million last year on higher impairment charges at subsidiary Sable Chemicals.
CBZ closed unchanged at US15 cents after reporting a 43 percent decline in profit in the three-month period to March.
Tetrad forecasts the stock market will continue to decline in the short term.
“Short of any fundamental changes, we expect the stock market to resume its gradual decline in value in the short term,” said Tetrad.
On Wednesday trading, Hippo advanced US0,60 cents to trade at US62 cents while Turnall rose US0,30 cents to US3,30 cents.
Dairibord and ZPI also gained.
Further gains were offset by losses in Meikles, which slipped a cent to close at US18 cents. First Mutual, Star Africa, FBCH and OK Zimbabwe were among the decliners, with the latter losing US0,10 cents to trade at US19,90 cents.
