ZSE analysts expect high growth prospects for firms

Analyst say they expect high growth prospects for firms listed on the lack-lustre but gradually improving Zimbabwe Stock Exchange (ZSE).

In exclusive interviews the analysts said the current reporting season was proving very lucrative for locally listed firms especially those in the foods and telecommunications industry where cash is the order of the day.

Major drinks producers Delta Corporation Limited, the most heavily capitalised company on the ZSE and top telecommunications giant Econet Wireless Zimbabwe Holdings Limited lead the pack right now due to their very aggressive marketing strategies as well as their decision to demand cash for their products.

Econet currently has a market capitalisation of $96 198 349 on the ZSE.

It is the second most heavily capitalised stock on the bourse right now following closely behind Delta currently led by Joe Mutizwa.

In Zimbabwe, Econet is led by Douglas Mboweni but controlled by top business mogul, Strive Masiyiwa now based in South Africa.

Econet's share price stands at 363c on the bourse. Delta, on the other hand, has a market capitalisation of $1 184 908 715 on the bourse and a share price of 71c.

"The last reporting period showed signs that most of the companies on the ZSE showed signs that most of them have turned the corner with the very positive results coming in while on the global markets, recovery has been hampered by the Europe debt crisis with last week's debt deal expected to ease the pressure mounting from the debt issue," a ZSE investment analyst from a Harare-based top securities firm said in an exclusive statement.

"The good results have naturally added to the allure for the internationally-focused investors especially where prices are clearly discounted relative to the financial performance particularly earnings (present and future)."

He said although the list was longer, his firm had believed strongly that it had limited coverage to six stocks on the ZSE whose market values were now significantly discounted relative to the value they saw in them, thereby creating opportunities for those wishing to take up positions on the local market.

The official said the ZSE-listed firms in which to take up positions included AICO Limited, Delta, Econet, Hippo Valley Estates Limited, National Foods Limited and supermarket chain, OK Zimbabwe Limited.

Hippo has a market capitalisation of $193 020 564 and a share price of 85c, National Foods has a market capitalisation of $68 400 108 and a share price of 85c, while supermarket chain OK has a current market capitalisation of $1 020 945 614.

OK's share price stands at 10c on the ZSE at the moment.

"Besides trading at undisputed discounts to both the local and regional market comparatives, our company sees high growth prospects in these firms given their profitable outlook," the investment analyst said in an his exclusive statement.

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