HomeNews$20 million raised in special bargains

$20 million raised in special bargains

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Three special bargains generated nearly
$20 million on the Zimbabwe Stock Exchange (ZSE) turnover on Friday as high value transactions continue to drive the underperforming bourse.

A bargain hunter swooped on 20 million Delta shares at $0,70 cents implying a 0,03 premium as demand of the bellwether stock remained high.
The transaction came through a book over that was brokered by Old Mutual Securities.

A special bargain deal is when shares are bought for higher or lower than their market value.
The price is negotiated between interested parties.

Analysts have indicated that Delta, a unit of SABMiller Plc, which has been one of very few companies that have managed to increase capacity utilisation levels to nearly 100%, has managed to attract huge interests from offshore investors despite worries over indigenisation and empowerment regulations compelling foreign-owned companies to dispose of 51% interest to black Zimbabweans.

They attributed the counters strong performance to growing demand of beverages after the introduction of multiple currencies.

Industrial concern Tractive Power Holdings generated $3 million for the exchange in another special bargain that was brokered by ISB Securities and Invictus Securities.

The deal was at a 0,08% discount on the share price.

Turnover was also derived when a parcel worth $875 412,12 of Dawn Properties shares was bought, amid reports the property firm could soon announce board changes.

Overall performance of the ZSE has, however, remained subdued despite an increased frequency of high value transactions like special bargains.
As of Friday, market capitalisation stood at $3,368 billion, a 0,36% drop from the previous day.

Apparently, block trades involving foreigners have stimulated activity on the subdued local bourse, where local participation has been subdued by a liquidity crunch on the domestic market.

Market watchers said due to a liquidity crunch on the domestic market, some institutional investors had been on the market disposing equities to meet their cash obligations.

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