BULAWAYO - The Property sector has, in the last two weeks, led gains on the Zimbabwe Stock Exchange (ZSE) since the upward swing in the prices of shares began.The ZSE has been trading on a high since the MDC-T ended its cabinet boycott after the SADC troika summit. A sectoral analysis showed that the properties sector was the star performer, gaining 38 per cent led by gains by Mashonaland Holdings (Mashhold), Dawn and Zimre Property Investments (ZPI). In the second place was the mining sector, up 13,44 per cent.
The tourism and financial sector followed, gaining 12,96 per cent and 12,16 per cent respectively. Only three sectors recorded losses, which include the conglomerate sector,
down 1,51 per cent, the retail sector, down 1,36 per cent and the construction sector, down 0,23 per cent.
“Uncertainty on the direction to which property prices would take in the short to medium term on the local property market has brought indecisiveness as buyers and sellers remain sceptical on taking an informed buy or a sell position on a market that is starved of liquidity to oil its activities,” analysts wrote in a report.
The analysts were, however, optimistic that once the economy improved from its current situation as has been largely expected, barring the latest developments on the political scene, building societies would be anticipated to resuscitate mortgage financing thereby boosting the currently subdued demand on the property market. Analysts noted that the mining sector was one of the sectors that attracted phenomenal interest from foreign investors. They said a mining indaba held in September to try and drum up more support for the sector was also key to developments in the mining sector.
“It is not therefore surprising that following developments in the political landscape, investors could be shying away and holding on to their funds until there is a clear direction of where all this is going,” analysts said. In the outlook, analysts advised investors to be patient as patient long-term investors have been rewarded by the long run performance of the equities markets despite the harsh economic environment.
“In the meantime long term investors should take advantage of what the current market environment presents to ‘jump’ in into quality stocks,” analysts said. They said no matter what market you are referring to, all have similar characteristics and go through the same phases. “All markets are cyclical. They go up, peak, go down, and then bottom. When one cycle is finished, the next begins,” the report said.
Post published in: Agriculture