The Herald (Harare)

Zimbabwe: ZSE Hits All-Time High

THE Zimbabwe Stock Exchange industrial index inched closer to the 180,00-point mark yesterday as the equities market continued roaring on strong foreign buying. The mining index was also up in the sky, elevated by gains in Hwange Colliery Limited.

After trades, the industrial index gained 2,48 percent or 4,34 points, to 179,34 points. The mining index gained 4,25 percent or 3,43 points to close at 84,07 points.

The ZSE stocks have had a solid run since the beginning of the year, lifted by the growing appetite for heavyweight stocks which include Delta Corporation, Econet Wireless, Innscor Africa Limited, DHLZ and British America Tobacco (Zimbabwe).

Market analysts expect that the strong rally at the close of last year would be maintained this year as the global economic outlook improves. However, head winds remain as the economy is hugely undercapitalised, with most companies still weighed down by expensive debt.

The long-term growth potential of the economy remains strong and the stock market will mirror the growth pattern in the economy.

A senior stockbroker said investors, particularly foreigners, were upbeat about the "positive" developments on the political front, after political parties in the Government agreed on the draft constitution, which will pave way for the referendum and elections.

"The sentiment has generally improved . . and you see how they (foreigners) have been chasing after Delta's, Econet, OK and other heavyweight stocks," said the stockbroker who cannot be named because he is not allowed to talk to the Press without the approval of the regulator, Security Exchange Commission of Zimbabwe.

"But stocks that are not well capitalised will remain seriously depressed."

There were significant trades across the board, with five stocks recording transactions worth over US$100 000 as the total value traded closed at US$3 million.

Cigarette maker BAT hit an all-time high of US500c in trades worth US$250 000 while Delta jumped US4,01c to another new high of US126,01c in deals worth US$1,7 million.

Econet surpassed 2009's record level of US555c after advancing US14,99c to US560c in deals worth US$504 946, with analysts forecasting the price to beat the US600c level.

Food giant Innscor also traded at its all-time best level, after gaining US3,01c to US90,51c on a volume worth

US$213 409. Natfoods added a modest US0,11c to US140,11c. OK Zimbabwe was US0,53c firmer at 17,03c, its all-time high. while Powerspeed added US0,10c to its best level in 52 weeks of US1,5c.

TSL responded positively to financials for the year ended 2012 released yesterday where a final dividend of US0,43c was declared. It gained US1c to its all-time high of US12,5c. Interfresh led the fallers after losing 33,33 percent to US0,1c. Tractive was US0,60c lower at US9c ahead of its suspension from trading on the bourse today.

Seed Co dropped US1c to US77c while Aico Africa added US1c to US10.5c. Star- africa was US0,20c weaker at 1,3c.

In minings, Bindura was US0,40c firmer at US3,1c, taking its gains in January alone to 106,7 percent while Hwange added US1,50c to US19,5c. RioZim remained unchanged at 50c after the company announced it had approached the High Court as it seeks to restore normal operations at its Renco Gold Mine.

Ads by Google

Copyright © 2013 The Herald. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.