Business / Companies
Wikileaks fears shed $169 million from Econet value
11 Sep 2011 at 08:32hrs | Views
ECONET Wireless Zimbabwe (EWZ), the country's biggest telecommunications company by subscribers, has shed more than $169 million in value since the beginning of the year, with $42 million lost in September alone, as investor perception deteriorated and foreign investors sold local shares amid Wikileaks revelations on Masiyiwa political inclination.
At the beginning of trading on the Zimbabwe Stock Exchange (ZSE) on January 3 this year, the mobile phone company was valued at $800 million, with the share price quoted at $4,80.
However, the price has since tumbled to a 52-week low at $3,90 as of Tuesday last week, valuing the firm at more than $650 million.
By Thursday the price further dipped to US3,79, implying a market cap of $634 million.
EWZ has 167 321 127 shares in issue ' 93,65 being floating shares, while 73,65 million are Class A shares.
Though some of the economists generally regard floating shares as the true market value of a listed company, others opine that aggregate shares in issue can be an ideal measure.
Econet now trails blue chip beverages manufacturer Delta Beverages by a whopping $269 million in value.
Market watchers said that Econet's share price was mainly being plagued by investor sentiment, a sell-off by foreign investors spooked by the indigenisation and empowerment legislation, Wikileaks revelation and the general outlook of the telecommunications sector.
Econet's share price last peaked to $5,55 on October 23 2009, driving its market capitalisation to $920 million.
It opened 2010 at $4,90 before climbing to $5 on April 16.
This year, the share price has managed to peak at $5,05 on May 12 and May 13.
Even an announcement last week that the company was going to launch its mobile money service and also increase its subscribers to six million ' about half of the country's population ' by the end of year, failed to lift the stock.
The last statistics from regulator Postal and Telecommunications Regulatory Authority of Zimbabwe indicated that Econet had 4,2 million subscribers, NetOne 1,3 million and Telecel at 1,2 million.
Although Econet has largely survived on a controversy-free image, this has been questioned of late following its legal wrangle with Namibian firm Trustco following the cancellation of the tripartite deal involving the two firms and First Mutual Life.
English-born business tycoon Nick van Hoogstraten even threatened recently to spill the beans regarding Econet's dealings in Rainbow Tourism Group, triggering a drama that sparked angry exchanges and drew in the media.
At the beginning of trading on the Zimbabwe Stock Exchange (ZSE) on January 3 this year, the mobile phone company was valued at $800 million, with the share price quoted at $4,80.
However, the price has since tumbled to a 52-week low at $3,90 as of Tuesday last week, valuing the firm at more than $650 million.
By Thursday the price further dipped to US3,79, implying a market cap of $634 million.
EWZ has 167 321 127 shares in issue ' 93,65 being floating shares, while 73,65 million are Class A shares.
Though some of the economists generally regard floating shares as the true market value of a listed company, others opine that aggregate shares in issue can be an ideal measure.
Econet now trails blue chip beverages manufacturer Delta Beverages by a whopping $269 million in value.
Market watchers said that Econet's share price was mainly being plagued by investor sentiment, a sell-off by foreign investors spooked by the indigenisation and empowerment legislation, Wikileaks revelation and the general outlook of the telecommunications sector.
Econet's share price last peaked to $5,55 on October 23 2009, driving its market capitalisation to $920 million.
It opened 2010 at $4,90 before climbing to $5 on April 16.
This year, the share price has managed to peak at $5,05 on May 12 and May 13.
Even an announcement last week that the company was going to launch its mobile money service and also increase its subscribers to six million ' about half of the country's population ' by the end of year, failed to lift the stock.
The last statistics from regulator Postal and Telecommunications Regulatory Authority of Zimbabwe indicated that Econet had 4,2 million subscribers, NetOne 1,3 million and Telecel at 1,2 million.
Although Econet has largely survived on a controversy-free image, this has been questioned of late following its legal wrangle with Namibian firm Trustco following the cancellation of the tripartite deal involving the two firms and First Mutual Life.
English-born business tycoon Nick van Hoogstraten even threatened recently to spill the beans regarding Econet's dealings in Rainbow Tourism Group, triggering a drama that sparked angry exchanges and drew in the media.
Source - Sunday Mail
