HomeNewsForeign trade boosts local bourse

Foreign trade boosts local bourse

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SIX local counters dominated foreign trade on the local bourse as the stock market reduced its year-to-date loss after a strong start to the week.

BUSINESS REPORTER

Foreign inflows at the beginning of the week were at $1,41 million as the country continues to have favourable frontier markets allocation, albeit at reduced trading levels as compared to the beginning of the year.

Foreigners were net buyers of 237 706 shares as the industrials index put on 1,24% cutting its year-to-date loss to 2,16% from the January 1 level of 202,12.

Econet Wireless, Delta Corporation, Innscor, SeedCo, ART Corporation and British American Tobacco Limited are the most active counters.

At the commencement this week, there were $8,99 million foreign buys and $7,69 million foreign sales.

This is in comparison to $49,88 million foreign buys and $24,09 million foreign sales in January this year.

Foreign investors are attracted to counters that are showing strong performance fundamentals as compared to others that have not performed as well as expected due to economic downturn.

The acute liquidity shortages continue to remain the bane of resuscitation. This development is negatively impacting the local bourse and the economy.

A section of the bourse’s online trade update pertaining to liquidity compares total trades for the current year-to-date against trades to the same period last year.

As at the beginning of the week, beverages concern Delta Corporation Limited shed 9% to $72 253 248 as at August compared to $79 769 292 as at the same period last year.

Econet Wireless Zimbabwe Limited shed 24% to $60 578 999 as compared to $79 381 495 of last year during the same comparative period.

However tourism counter African Sun Limited gained 347% to $2 144 513 from $479 771.

Retail counter, OK Zimbabwe Limited gained 7% to $11 007 272 from $10 248 187 as at 2013.

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