The Sunday Mail
Business Reporter
STOCKS last week remained largely muted, as investors continue to digest the 2018 Budget and other economic developments in the country.
The main Industrials Index dropped 3 percent week to Thursday to 329,1 level amid declines in market heavyweights Delta and Econet.
Mining, however, rose 6 percent to 141,39 level spurred by gains in nickel producer Bindura, which released its half-year earnings report, showing improved revenues.
A week ago, Finance and Economic Planning Minister Patrick Chinamasa announced he expects the economy to grow 4,5 percent in 2018, but that has not provided sufficient cheer to equity investors.
Many are still concerned on whether Government will carry out the sweeping economic reforms announced in the Budget to boost growth across all sectors.
Economists also contend any reforms Government comes up with must foster production and enhance exports to boost the country’s foreign currency earnings.
This should help narrow the country’s trade deficit, which is at $1,56 billion in the 10 months to October 2017.
Economist Mr John Riobertson said Zimbabwe needs to come up with activities that generate more United States dollars.
Currently, there is a mismatch between the amount of money in the country and what is needed, resulting in cash shortages and liquidity constraints, which are affecting local industry.
In the week to Thursday, turnover amounted to $12 million after 18 million shares exchanged hands. The market’s top capitalised counters were the major value and volume drivers.
Total market capitalisation retreated 3,7 percent to $9,465 billion.
Dragging down the market were losses in financial services group CBZ Holdings, which retreated 18 percent to 15 cents in the week to Thursday.
Telecoms giant Econet closed the week 9 percent weaker to 98,33 cents. According to telecoms regulator the Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ), all telecoms firms recorded growth in data revenue and active mobile money subscriptions during the third quarter of 2017.
Property concern Dawn fell 4 percent to 2 cents while the market’s biggest stock by market capitalisation, Delta, retreated 3,38 percent to $1,50. The beverages maker is expected to grow sales volumes during the festive season, which is the peak period for most consumer-oriented stocks.
Also on the downside, diversified industrial conglomerate Innscor slid by 3,6 percent to $1,05 while crocodile breeder Padenga was 3,7 percent lower to 52,95 cents.
Other losses were recorded in Seed Co and Simbisa that lost 3 percent to 200 cents and 2,56 percent to 38 cents respectively.
Cigarette manufacturer BAT also lost 2,29 percent of value to $36.
Further losses were offset by gains in Zimre Holdings, which jumped 43 percent to 2,59 cents followed by Axia which rose 18 percent to 19,92 cents.
The specialty retail and distribution group recently reported revenue for its first quarter to September 30, 2017 went up by 32 percent compared to prior year’s comparable period on increased volumes across the board.
Other gains were recorded in Bindura, which rose 25 percent to 5,39 cents after profit for the half-year to September 30, 2017 jumped 83 percent to $2,2 million compared to $1,2 million recorded in same period last year.
Bindura’s total revenue for the period grew 7 percent to $24,1 million compared to the same period last year despite a 16 percent decline in output.
