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.
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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.
