ZSE continues to suffer

zseHARARE - Trading at the Zimbabwe Stock Exchange (ZSE) remains depressed, as last weeks marginal index gains were insufficient to offset weekly losses as the top share index slid 2.7 per cent compared to the week ending June 2.

The Mining index also fell 4.5 per cent during the week under review. The fall has been attributed to the uncertain political environment and the continued liquidity crunch that has seen the banking sector facing viability challenges. Trade from foreign investors, has therefore remained comparatively downcast and this has had an impact on the local bourses depressed performance.

Another contributing factor may be that returns from the equities market have been poor and this might have seen investors have shifting to the money market.

The 60 and 90-days investments are attracted an average of 10 and 12 per cent interest respectively while the 30-day period averaged eight percent. The 14-day investment rates stood at between two and four per cent. 14 counters traded in the positive during the week while over 41 million shares were traded for a total revenue of about US$7.4 million.

Delta, which commissioned a new PET plant in Harare last week and Econet, the largest telecommunications entity were the liquid counters.

The weekly turnover for Delta was just above US$2,4 million while Econet had aboutUS$2,3 million, representing just over 50 per cent of market turnover of 84 trading counters.

Post published in: Manufacturing

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