Business / Companies
Zimbabwe offers great potential as a recovery play - Imara
03 May 2012 at 07:03hrs | Views
With low activity still persisting on the market, an improved level of turnover was recorded during the week from US$ 4.9m to US$ 6.6m and thus the daily turnover breached the US$ 1.0m mark. A special bargain of 3.2m Delta shares contributed significantly to weekly trades. Delta is due to release its FY 2012 results on Wednesday, 9th May 2012.
Other counters to record reasonable volumes included Econet, Innscor and SeedCo. Foreigners were net buyers with net cash inflow of US$ 370 000 and volumes of trades were concentrated in; Econet, Delta, Innscor, Seedco and Ok Zimbabwe Limited. The mining index recorded meaningful gains inching 11.6% to 98.31 points while the industrial index ended 2.94% in the red.
Most local companies remain undercapitalised. This can be attributed to the liquidity constraints, lack of FDI and high interest rates. In our view, the current uncertainties have negatively impacted on FDI inflows.
That said, Imara Stockbrokers that Zimbabwe offers great potential as a recovery play and we urge investors to take positions in rapidly growing, dominant, well managed and strong cash generating companies such as Afdis, BATZ, Dairibord, Delta, Econet, Innscor, OK Zimbabwe, Padenga and SeedCo.
Other counters to record reasonable volumes included Econet, Innscor and SeedCo. Foreigners were net buyers with net cash inflow of US$ 370 000 and volumes of trades were concentrated in; Econet, Delta, Innscor, Seedco and Ok Zimbabwe Limited. The mining index recorded meaningful gains inching 11.6% to 98.31 points while the industrial index ended 2.94% in the red.
Most local companies remain undercapitalised. This can be attributed to the liquidity constraints, lack of FDI and high interest rates. In our view, the current uncertainties have negatively impacted on FDI inflows.
That said, Imara Stockbrokers that Zimbabwe offers great potential as a recovery play and we urge investors to take positions in rapidly growing, dominant, well managed and strong cash generating companies such as Afdis, BATZ, Dairibord, Delta, Econet, Innscor, OK Zimbabwe, Padenga and SeedCo.
Source - Imara Stockbrokers
