The Sunday Mail
THE Zimbabwe Stock Exchange (ZSE) last week remained largely unchanged on continued investor concerns over deflation and economic growth.
By close of trade Wednesday, the mainstream industrial index was up a marginal 0,65 percent, or 0,64 points, at 98,65 points from a week earlier.
Minings remained fixed at 20,16 points for the eighth straight day, with the total market capitalisation climbing a marginal $4 million to $2,67 billion.
The global rout in commodities has dampened interest in resource stocks.
Year-to-date, punters have lost 14,4 percent of value, or over US$350 million, on the ZSE, as foreign investors, who account for over 60 percent of all trades, exit the market.
Comparatively, the Nigerian all-share index has slipped 13,7 percent since beginning of the year, while the Johannesburg Stock Exchange has been the best performer, adding 4,62 percent of value.
During the week, the Zimbabwe National Statistics Agency reported that the country slipped further into deflation.
Annual inflation for March dropped to – 2,31 percent from -2,23 percent the month before, it said.
Market watchers say the deflationary environment is an indication of an economy that remains under pressure from multiple fronts – low aggregate demand and high production costs.
The country’s biggest company by market value, Delta Corporation, recently reported a sharp decline in volumes for the second successive year.
It said on April 15 that revenues fell 9 percent in 2015 from a year ago due to an 8 percent decline in lager beer volumes and sharp competition from low-priced imports.
Delta Corporation, whose full-year 2015 earnings are due for release on May 12, said the performance mirrors the subdued broader economic climate.
Market watchers are eager to see if the beverages giant managed to contain its costs to maintain acceptable levels of profitability.
Shares of Delta have tumbled 18 percent since January, costing investors $125 million in losses.
On Tuesday, industrials slipped 0,02 percent to 98,33 points in a sellers’ market in a holiday-shortened week.
No counter rose.
Turnover for the day fell 95 percent to $39 759 with no foreign buys recorded.
The low activity on the market was also a result of muted foreign participation.
Telecoms giant, Econet closed trade 0,02 percent weaker at US25,50 cents.
Fidelity lost 0,96 percent to US10,30 cents after the Insurance and Pensions Commission (IPEC) appointed KPMG Chartered Accountants Zimbabwe to conduct a forensic audit in terms of the Insurance Act.
The audit will look into allegations of corporate governance malpractices at the company, according to a statement released by IPEC.
Fidelity’s managing director Mr Simon Chapereka and finance director Mr German Mushoma were sent on leave to facilitate investigations.
Last week, diversified industrial conglomerate Innscor Africa Limited announced plans to unbundle the group’s specialty retail and distribution business unit, Axia Corporation.
Last November, the group approved the unbundling and separate listing of the unit that is able to capitalise on its achievements and for it to benefit from renewed and specific focus.
According to the group’s circular to shareholders, Axia was incorporated as a wholly-owned subsidiary on February 24, 2016.
The company comprises of three main operations – Distribution Group Africa, Innscor Credit Retail (TV Sales & Home) and Moregrow Enterprises (holding company of Transerve).
