HomeBusinessIndustrial index dips 10,48%

Industrial index dips 10,48%

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The benchmark industrial dipped 10,48% yesterday to close at 387,38, the fourth consecutive loss on the Zimbabwe Stock Exchange (ZSE) since the military stepped in last week .

BY TATIRA ZWINOIRA

The index was down 11,32% on Friday, 7,46% on Thursday and 1,28% on Wednesday.

Yesterday’s decline was led by losses in heavy caps Old Mutual, Delta, Seedco and PPC.

Old Mutual shed $2,2500 to close at $9,2500, Seedco came off $0,5368 to $2,1475 while PPC retreated $0,5304 to settle at $2,1993. Delta eased $0,3977 to $1,6398, Econet went down $0,2670 to close at $1,0730 and Tobacco Sales Limited was $0,0900 lower at $0,4600.

There were no trades in the positive territory. CFI Holdings, Edgars, Lafarge and Zimre Holdings Limited traded unchanged at $0,7000, $0,0520, $1,4400 and $0,0213, respectively.

The mining index was flat at 134,40.

The losses from these heavy hitters meant that the market cap fell a further 10,28% to $11,077,184,026 at the end of yesterday’s trading.

Stockbrokers told the paper that a drop in share prices was owing to an increase in supply compared to demand as investors and shareholders were looking to offload stock on the back of the military takeover and the uncertain economic prospects it brings.

This was leading to the prices falling in what some stock analyst are saying is a process in which the true market value of shares was slowly reflecting.

Stockbrokers’ Association of Zimbabwe vice-chairperson, Arnold Dhlamini said if the current situation continued then the ZSE could be heading for a correct valuation of stock.

“Currently, it is a buyer’s market and the buyer is saying what they want and while the few are panicking wanting to sell and get out because a lot of them who came in were betting on the stocks,” he said

“The market will realise that this is just an event that is happening on the political side. In terms of fundamentals, they have not changed as much as they do not change overnight in tandem with what is happening so we should see the buying coming back.”

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