Imara Edwards Securities Zimbabwe Stock Exchange weekly review

Yet another week characterised by subdued trading activity as the daily average value traded failed to breach the US$ 1.0m mark. The weekly turnover retreated to US$ 3.5 million from a spectacular amount of US$ 16 million due to low investor interest. Reasonable volumes in Econet and Dairibord as well as two special bargains in RioZim contributed the bulk of the weekly turnover.

Both indices ended in the red as the mining index lost 0.46% to 88.80 points whilst the industrial index fell 1.36% to 134.14 points. Foreign trades resulted in cash net inflow of US$ 1.2 million with buying concentrated in Delta, Econet, Rio Zim and Old Mutual.

With liquidity shortages remaining a topical issue that is negatively impacting the bourse and the economy as a whole, there is a general view that the speeding up of the constitution-making process coupled with the holding of free and fair elections may aid investor confidence.

There is a view that the current uncertainties and failure to come up with investor protection policies is contributing to low foreign investor participation. It is our view that Zimbabwe offers great potential as a recovery play and urge investors to take position in rapidly growing, dominant, well managed and strong cash generating companies such as Afdis, BATZ, Dairibord, Delta, Econet, Innscor, OK Zimbabwe, Padenga and SeedCo.