Zimbabwe Stock Exchange analysis

Zimbabwe Stock Exchange analysis
Published: 24 January 2012 (3461 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

Fresh bid to nullify Cyril Ramaphosa's ANC election

by City Press | 21 October 2018 | 159 Views

Chiwenga slams fake prophets

by Staff reporter | 21 October 2018 | 192 Views

Fuel shortages persist in Bulawayo

by Staff reporter | 21 October 2018 | 120 Views

Joel Luphahla's TelOne promoted to PSL

by Staff reporter | 21 October 2018 | 115 Views

Dynamos snatch late controversial winner

by Staff reporter | 21 October 2018 | 136 Views

How Mugabe survived assassination in Gutu

by Staff reporter | 21 October 2018 | 190 Views

Zimbabwe fuel crisis a result of leadership kwashiokor, says Chamisa

by Staff reporter | 21 October 2018 | 166 Views

'Mavhaire was a herdboy during liberation struggle'

by Staff reporter | 21 October 2018 | 159 Views

Mnangagwa warns black market currency speculators

by Staff reporter | 21 October 2018 | 144 Views

Zimbabwe bakers plot $4 per loaf

by Staff reporter | 21 October 2018 | 140 Views

Tackling the Zimbabwe black market

by President Emerson D. Mnangagwa | 21 October 2018 | 114 Views

Hefty fines for price hikes

by Staff reporter | 21 October 2018 | 113 Views

Black market dragnet targets bigwigs

by Staff reporter | 21 October 2018 | 90 Views

PHOTO: Zanu-PF buys fuel from black market

by Stephen Jakes | 21 October 2018 | 130 Views

The perils of trade protectionism

by Colls Ndlovu Financial Analyst | 21 October 2018 | 102 Views

Mnangagwa's lieutenants in political storms

by Staff reporter | 21 October 2018 | 142 Views

Tendai Biti always has something to say

by Staff reporter | 21 October 2018 | 121 Views

'Mthuli Ncube using 2% tax to reward Zanu-PF youths'

by Staff reporter | 21 October 2018 | 127 Views

Chiwenga's wife pours heart out

by Staff reporter | 21 October 2018 | 158 Views

Zimbabwe struggling with spike in fuel demand

by Staff reporter | 21 October 2018 | 107 Views

Chamisa mobbed by motorists in fuel queue

by Staff reporter | 21 October 2018 | 122 Views

MDC 'prostitute' battles for dear life at hospital, thigh vending goes south

by Simbarashe Sithole | 21 October 2018 | 207 Views

Godlwayo meets in Avoca for a developmental agenda

by Thulani Nkala | 21 October 2018 | 103 Views

Govt not introducing price controls - Industry Minister

by Staff Reporter | 21 October 2018 | 147 Views

Jonathan Moyo raps Modi for selling goods in US Dollar

by Stephen Jakes | 21 October 2018 | 152 Views

Security companies accused of stealing

by Stephen Jakes | 21 October 2018 | 131 Views

Mnangagwa not introducing price controls

by Staff reporter | 21 October 2018 | 114 Views

Prisoners seek spiritual cleansing

by Staff reporter | 21 October 2018 | 94 Views

Betting shops have sprouted across Zimbabwe

by Staff reporter | 21 October 2018 | 97 Views

When Cupid flew Modi to Zimbabwe

by Staff reporter | 21 October 2018 | 94 Views

RBZ in statutory reserve requirements U-turn

by Staff reporter | 21 October 2018 | 112 Views

WATCH: Bosso face troubled Bulawayo City

by Staff reporter | 21 October 2018 | 115 Views

Bulilima villagers resist relocation

by Staff reporter | 21 October 2018 | 64 Views

Mbonisi Gumbo of MRP gives his 2018 election analysis

by Thulani Nkala | 21 October 2018 | 129 Views

Zesa rules out load-shedding

by Staff reporter | 21 October 2018 | 81 Views

Family watches father's killing on WhatAapp

by Staff reporter | 21 October 2018 | 89 Views

Ex-Bosso player on his war exploits in Gwanda

by Staff reporter | 21 October 2018 | 118 Views