THE Zimbabwe Stock Exchange (ZSE) traded in positive territory yesterday, shrugging off the uncertainty that had been associated with Wednesday’s elections.
Report by Victoria Mtomba
The industrial index increased 0,13% to close at 233,18 points, with four counters trading in the positive-BAT, National Foods, Old Mutual and Edgars.
BAT gained 30cents to trade at 1 455 cents and National Foods increased by 5 cents to 245 cents, Old Mutual moved up 0,99 cents to 240 cents and Edgars traded at 14cents after gaining 0,80 cents.
TA Holdings lost 0,18 cents to close at 7,62 cents. The industrial index rose to 232,87 points after gaining 0,90 points.
The mining index remained flat at 66,77 points with Bindura, Falgold, Hwange and RioZim were unchanged at previous levels.
ZSE has been on a growth path since the beginning of the year, defying all fundamentals, according to Finance minister Tendai Biti.
Presenting his mid-term fiscal policy review statement, Biti said: “This has resulted in the local bourse being ranked fourth in Africa by weekly turnover, after Nigeria, Johannesburg Stock Exchange and Nairobi Stock Exchange and third by year to date return after Ghana and Uganda as at May 31 2013.”
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The performance of the ZSE was still below 2012 and confined to few solid counters and foreigners continue to dominate with average market participation of 61% on the buy side.
However, local investors are mainly net sellers due to low disposable incomes and savings.
In the first six months of the year, the industrial index registered a 38,6% growth to 223,58 in June from 152,4 in January, while the mining index increased 11,2% to 70,42 points from 65,12 points in the same period.
Although statistics show that the local bourse has been registering positive growth, there are still various challenges that include minimal corporate actions, absence of new listings and many struggling companies.
Some of these listed companies are struggling due to lack of working capital and inability to meet continuing obligations of listed companies.
