Zimbabwe Stock Exchange analysis

Zimbabwe Stock Exchange analysis
Published: 24 January 2012 (3582 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

Horror Cyclone destruction trail unravels

by Staff reporter | 24 March 2019 | 32 Views

Potraz board okays tariff increases

by Staff reporter | 24 March 2019 | 29 Views

Questions over Mnangagwa's choice of advisors

by Staff reporter | 24 March 2019 | 32 Views

Jabulani Sibanda to bounce back?

by Staff reporter | 24 March 2019 | 28 Views

3 lawyers banned from practising

by Staff reporter | 24 March 2019 | 36 Views

Rights Commission finalising probe into Zimbabwe army crackdown

by Staff reporter | 24 March 2019 | 28 Views

Warriors ease into Afcon finals

by SuperSport | 24 March 2019 | 26 Views

Open letter to President Mnangagwa

by Viniel Deredza | 24 March 2019 | 27 Views

Mnangagwa goes Biblical: 'Zimbabwe accepts will of God'

by Staff reporter | 24 March 2019 | 26 Views

Zimbabwe volcano fears

by Staff reporter | 24 March 2019 | 35 Views

Sofa not so good

by ZimVigil | 24 March 2019 | 25 Views

Afreximbank grants Zimbabwe interbank forex trade loan

by Staff reporter | 24 March 2019 | 19 Views

'Tax reforms to rescue debt-distressed Zimbabwe'

by Staff reporter | 24 March 2019 | 32 Views

Rocks from mountain crush huts in Zimbabwe

by City Press | 24 March 2019 | 40 Views

Chamisa rallies national team

by Staff reporter | 24 March 2019 | 89 Views

Dan Tshanda's Zimvavwe protégé keeps Splash alive

by Staff reporter | 24 March 2019 | 51 Views

More Cyclone Idai bodies retrieved

by Staff reporter | 24 March 2019 | 90 Views

Mtukudzi's daughter plays down Daisy rift

by Staff reporter | 24 March 2019 | 78 Views

TelOne donates $100,000 towards Cyclone Idai

by Staff reporter | 24 March 2019 | 54 Views

Teacher jailed for assaulting pupil

by Staff reporter | 24 March 2019 | 49 Views

ILO in bid to mend Mnangagwa govt, ZCTU rift

by newzimbabwe | 24 March 2019 | 51 Views

3 in court for assault

by Staff reporter | 24 March 2019 | 47 Views

Unpredictable PSL season beckons

by Staff reporter | 24 March 2019 | 49 Views

Zimbabwe adopts new male circumcision strategy

by Staff reporter | 24 March 2019 | 32 Views

Mnangagwa keeps private jet on standby

by Staff reporter | 24 March 2019 | 53 Views

SA-based Zimbabwean pastor contributes to Cyclone Idai

by Staff reporter | 24 March 2019 | 42 Views

Ex-lover takes Matonga to court

by Staff reporter | 24 March 2019 | 52 Views

Fears of cholera outbreak in Manicaland

by Staff reporter | 24 March 2019 | 50 Views

War veterans, minister clash

by Staff reporter | 24 March 2019 | 52 Views

Fake Zacc officials jailed

by Staff reporter | 24 March 2019 | 43 Views

Warrant of arrest for Grace Mugabe's brother

by Staff reporter | 24 March 2019 | 37 Views

'Using Air Zimbabwe will pose logistical problems for Mnangagwa'

by Staff reporter | 24 March 2019 | 65 Views

Robbing the poor in the name of patriotism

by Tawanda Majoni | 24 March 2019 | 55 Views

Zimbabwe banks must support the interbank trading

by Andrew Lampard | 24 March 2019 | 49 Views

Mnangagwa pledges support for Gukurahundi victims

by Staff reporter | 24 March 2019 | 21 Views

Potraz brings toll free platforms to rural folk

by Staff reporter | 24 March 2019 | 25 Views

Gweru prophet sets up school of spiritual gifts

by Staff reporter | 24 March 2019 | 23 Views