The Sunday Mail
Zimbabwe Stock Exchange (ZSE) turnover doubled to US$34,4 million in February, recovering from January’s six-year-low of US$16 million.
The value of shares traded slumped to US$16 million in January, its lowest since 2009, as jittery foreign investors — who dominate ZSE trades – stayed away.
But the latest statistics from the stock market show that the mainstream industrial index gained 1,37 percent to 167,16 points at the end of February, helped by gains by heavyweights.
Of the top 10 most-capitalised counters, SeedCo rose fastest in value, up 11 percent to 104c. Delta and Innscor climbed 3,5 percent each and Econet gained 3 percent.
Minings dropped 4,73 percent to 55,38 points, dragged by losses in Falgold and RioZim that shed 16 percent and 33 percent, respectively.
Total market capitalisation, inclusive of Econet’s class A shares, closed the month of February at US$4,7 billion, up 0,22 percent.
Average daily trades of US$1,72 million were recorded, while total value traded rose 97 percent to 108 million shares.
Of the index shares during the review period, Radar and Zimplow rose highest, soaring 50 percent and 36 percent, respectively.
Zimplow recently raised US$5 million from a rights issue that was 40 percent subscribed to help cut funding costs and retire short-term debt.
Other notable gains were reported in Masimba, Powerspeed and Barclays which rose 33 percent, 30 percent and 28 percent, in that order.
CFI paced the shakers, plunging 23 percent, and Cafca and cement-maker Lafarge lost 20 percent each.
In the absence of key catalysts that stimulate economic growth, analysts do not expect the bears to let loose this year, except for a few picks with solid financial bases.
“We expect flat to marginal top-line” in the earnings for March, said stockbrokers IH Securities in their February market review.
Financial results are expected for a number of major counters in March.
Diversified group Innscor last week reported that revenue for the half-year to June 2014 fell to US$512 million from US$525. Profit for the period under review also fell to US$23 million from US$64 million.
Its subsidiary, Colcom, recorded an operating profit increase of 22 percent to US$4,6 million over the comparative prior period.
Although overall volumes declined by 6 percent, an improved sales mix and rationalised product range powered improved margins.
National Foods said revenue for the half-year to June 2014 marginally increased to US$167 million from US$165 million recorded for the same period in the prior period.
Profit fell to US$6,37 million from US$6,87 million. Total volumes increased marginally while costs declined 2 percent as cost containment measures begin to bear fruit.
The largest financial institution by assets and deposits, CBZ Holdings, on February 25 released financials for the year ended December 2014 showing net profit down by 10 percent on the back of high operating costs.
Clarity is expected this March with regards to agriculture performance. Agriculture is the backbone of the Zimbabwean economy employing over half of the employable population.
Overall, IH Securities tips CBZ, National Foods and telecoms giant Econet to weather any storms.
Stockbrokers believe Econet’s dominance in the telecoms sector and its growth from data and mobile money service gives it a competitive edge, while National Foods is “one of the defensive stocks” on the local bourse.
“In the short to medium term, we believe National Foods is also well placed to invest in the new categories that can leverage off an existing admin and distribution network to positively impact earnings in the short to medium term,” said IH.
On a year-to-date basis, the ZSE has gained 2,68 percent.
