TRADE in Econet's foreign and local Letters of Allocation have boosted volumes and turnover on the Zimbabwe Stock Exchange in the past week, although the main Econet stock continues on a tailspin.
The telecom firm's rights offer shares, known as LAs, began trading on the bourse on February 20.
Last week, the LAs drove volumes accounting for 88 percent of the total exchanges while the main Econet stock accounted for 4 percent of total shares. A total 58,7 million shares exchanged in the week, representing a 4 percent increase from prior week's 56 million shares.
Although turnover for the week fell 40 percent to $3,485 million in the week, Econet's local and foreign LAs contributed 31 percent of that total turnover as punters seek exposure to the telecoms giant.
In similar fashion, the LAs dominated trades on Monday, although in a subdued week - opener as all trading aggregates trended southwards relative to previous session.
Volumes were down 61 percent to 12,4 million shares with leading contributions coming from the Econet LAs which contributed 95 percent of the total traded volume.
While market spend was down 65 percent to $351 459, Econet's LAs drove the aggregates.
The shares traded at 2,25 cents, less than half the price of what the telecoms firm initial rights issue price of 5 cents, as indicated in a circular on its $130 million cash call in February. Econet,is raising funds for its offshore debt.
The rights offer closes on March 17.
Meanwhile, Econet's share price has succumbed to a 56 percent decline year to date to 13 cents but market watchers anticipate recovery post financial year 2018 as a result of the transaction.
But the prevailing liquidity challenges coupled with regulatory interventions and low disposable incomes are anticipated to continue resulting in revenue declines for financial year 2017.
Notwithstanding this, some analysts have recommended shareholders to follow their rights given the dilutive effect of the transaction.