Harare — Zimbabwe's largest beverage maker, Delta Corporation, seed house, Seed Co and diversified conglomerate, Innscor Africa, are among Kingdom Stockbrokers' top 10 picks in terms of brand recognition and dividend payments.
According to the third quarter market output report released by Kingdom Stockbrokers this month Seed Co has seen 'huge demand' in markets such as Zambia, Malawi and Kenya where the company is 'synonymous with quality.'
The top ten picks are meant to guide long-term investors, especially foreigners, on which counters to invest in on the local bourse.
Innscor was favoured for its diversified product range, which includes Chicken Inn, Spar and three crocodile farms.
The company's 'huge cash flow position makes it able to pay handsome dividends,' according to the report.
Delta, in addition to having a dominant market share, is also expected to start running a new bottling line by late September, replacing 20-year-old equipment.
This will increase capacity by as much as 600 000 hectoliters (15,9 million gallons) per year, the Kingdom analysts wrote.
Econet Wireless Holdings Ltd was picked as it continues to dominate the local mobile phone market in terms of innovation and market share, which currently stands at over 60 percent.
"Subscriber base has grown from 910 000 in 2008 to 1,2 million by February 2009 and a target of 3,2 million subscribers by December 2009, and 5 million by December 2010.
"The company has started rolling out the 3G service following the issuing of a licence by the regulatory authority.
"The launch of 3G is the next step after the launch of General Packet Radio Service (GPRS) which allows mobile internet access," the analysts noted.
Econet will also launch Blackberry service for the first time in Zimbabwe.
The Blackberry is a special cell phone that allows customers to receive e-mail.
Other counters in the Kingdom top ten picks include Star Africa Corp, TA Holdings Ltd, RioZim Ltd, CFI Holdings Ltd, Pretoria Portland Cement Company Ltd and African Sun Ltd.
Counters to watch that fall just outside the top ten
are Hwange, Hippo, Pearl, CBZ, Caps, Barclays and RTG.