Zimbabwe Stock Exchange analysis

Zimbabwe Stock Exchange analysis
Published: 24 January 2012 (3354 Views)
The market last week was characterised by worthwhile activity with a record breaking deal of 120.4m Meikles shares executed at US 17.5c pushing Monday's daily turnover to a post-dollarisation record of US$ 21.4m.  

There was another special bargain of 600,000 Delta shares done at US 70.0c later on in the week whilst counters such as AICO, Dairibord, Econet, Hippo and Innscor were also actively traded. Market players have however remained cautious of the mining sector as reflected in the limited trading volumes.

Unclear policies especially on the indigenisation and empowerment front are likely to continue giving sway on the extent of the funds availed for investment locally. Relative to FDI, FPI has been the largest recipient of offshore investments, as it is easier to withdraw funds from the latter.

This trend could persist in the short term; however we expect favourable negotiation of the indigenisation bill to result in an increase in business confidence and consequently longer term investment. Further, a successful resolution to the Euro-zone crisis should result in an increase in liquidity in Europe and a return in demand for emerging market stocks.

The local bourse amongst other emerging and frontier equities markets could thus benefit from the funds flow.

Imara Stockbrokers believe that the ZSE still carries good long term growth potential given the economy's strong growth prospects, albeit off a low base. Nonetheless, the market will remain volatile and we urge investors to maintain a careful selection policy. Our buy recommendations include AICO, Dairibord, Delta, Econet, Innscor, M&R, Padenga and SeedCo. 

- Imara Stockbrokers

Tags: Stock, Exchange,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Felix Magalela Mafa Sibanda calls for General Strike in Zimbabwe

by Mlungisi Gwenya - Metro Youth News | 19 April 2018 | 16 Views

Drama at police station as constable assaults his superior

by Simbarashe Sithole | 19 April 2018 | 11 Views

Chiyangwa's Zeco remains in the red

by Staff reporter | 19 April 2018 | 12 Views

'Zimbabwe will rise again' - Mnangagwa's independence speech in full

by Emmerson Mnangagwa | 19 April 2018 | 13 Views

Chamisa favoured by parliament compared to Khupe

by Staff reporter | 19 April 2018 | 10 Views

Zanu-PF Politburo meeting tomorrow

by Staff reporter | 19 April 2018 | 10 Views

Govt rewards non-striking nurses

by Staff reporter | 19 April 2018 | 10 Views

Nurses retirement age moved to 70 years?

by Staff rpeorter | 19 April 2018 | 9 Views

ZIFA received close to R1 million from national teams

by Staff reporter | 19 April 2018 | 14 Views

Zimbabwe should restore its status, says Shiri

by Staff reporter | 19 April 2018 | 10 Views

Mnangagwa condemns violence, hate speech

by Staff reporter | 19 April 2018 | 6 Views

Zimbabwe delegation dazzles investors on Wall Street

by Staff reporter | 19 April 2018 | 11 Views

Fuel price cut likely

by Staff reporter | 19 April 2018 | 11 Views

Chidzambwa fails Zimbabweans again

by Staff rpeorter | 19 April 2018 | 10 Views

Police to name, shame violence perpetrators

by Staff reporter | 19 April 2018 | 9 Views

Mapeza on recovery path

by Staff reporter | 19 April 2018 | 9 Views

Solusi High 'fires' 12 teachers

by Staff reporter | 19 April 2018 | 9 Views

Mnangagwa eyes 4.5% growth rate

by Staff reporter | 19 April 2018 | 9 Views

Government hospitals ordered to recruit fired nurses' replacements

by Staff reporter | 19 April 2018 | 9 Views

PSL mull e-tickets for matches

by Staff reporter | 19 April 2018 | 8 Views

Jailbreak pair nabbed on way to SA border

by Staff rpeorter | 19 April 2018 | 6 Views

Khaya Moyo summoned over Chivhayo solar project

by Staff reporter | 19 April 2018 | 6 Views

Mudede's office in mop up exercise ahead of polls

by Staff rpeorter | 19 April 2018 | 5 Views

7 killed in horrific accident

by Staff reporter | 19 April 2018 | 6 Views

Axe to the head in fight over gold mine

by Staff rpeorter | 19 April 2018 | 6 Views

Mnangagwa pained by Zimbabwe cash shortages

by Staff reporter | 19 April 2018 | 9 Views

Army's diamond mining activities under spotlight

by Staff reporter | 19 April 2018 | 8 Views

Bulawayo City beat a second string Bosso side

by Staff reporter | 19 April 2018 | 11 Views

PSL summon police

by Staff reporter | 19 April 2018 | 12 Views

Civil Aviation Amendment Bill faces rejection by MPs

by Staff reporter | 19 April 2018 | 6 Views

Residents in rates boycott

by Staff reporter | 19 April 2018 | 8 Views

Mixed reactions to Mnangagwa's Uhuru speech

by Staff reporter | 19 April 2018 | 7 Views

Chiwenga should revoke firing of nurses, negotiate

by Nqaba Matshazi | 19 April 2018 | 9 Views

Chamisa demands that Zec procure ballot boxes by tender

by Staff reporter | 19 April 2018 | 7 Views

Mujuru's party hit by defections

by Staff reporter | 19 April 2018 | 5 Views

Zanu-PF MP dies

by Staff rpeorter | 19 April 2018 | 6 Views