TRADING on the Zimbabwe Stock Exchange (ZSE) was down last week as investors were weighing their options and exercising extreme caution ahead of an announcement of the election results, trading data has indicated.
In IH Securities weekly round-up of the trading performance last week, the industrial index closed the week 0,12% lower at 383,77 points, showing a decline in the values of industrial stocks.
“The week’s largest losses were recorded in Masimba, down 19,35%, CBZ, down 7,91% and Econet, down 0,92%,” IH Securities said.
“The Industrial Index closed the week 0,12% lower at 383,77.”
IH Securities also reported that the all share Index which shows the changing average value of share prices of all companies on the market ended the week 0,10% lower at 114,19 points while the top 10 Index was down 0,37% to 118,43 points.
The top 10 index measures the top 10 performing counters on the stock exchange.
However, looking at the statistics provided by the ZSE on the week-on-week changes, the all share index retreated 0,12 points (0,10%), industrial index came off 0,45 points (0,12%) and the top 10 index dropped by 0.44 points (0.37%). ZSE reported that despite drops in these three indices, the mining index gained 0.63 points (0.38%).
“Trading in heavyweights this week was relatively weak, with Econet and Innscor dropping 0,92% and 0,10%, respectively, while Delta gained 0,02%. The week’s top gainers were Dairibord, Zimplow and PPC, up 10,15%, 3,90% and 1,62%, respectively,” IH Securities said.
Last week, the country held harmonised elections whose outcome determines the country’s future relationship with the international community.
However, the election result that gave President Emmerson Mnangagwa a 50,8% of the vote against his main rival MDC Alliance presidential candidate Nelson Chamisa’s 44,3% , has since been widely condemned as not being free and fair.
This, coupled with the fact that the army shot and killed six people and growing reports of alleged illegal searches and beatings of residents in selected suburbs in most cities, does not bode well for the country’s investment prospects. South African investment research and advisory firm Emergent Research predicted before elections that a disputed election would lead to perceived risks and sticky sanctions that would repel any funding and lending.
“Perceived risks and sticky sanctions repel any funding and lending. Current investors and lenders will seek to exit Zimbabwe, drying up credit,” Emergent Research predicted.
But while the industrial index was down, IH Securities said the mining index gained 0,38%, ending the week at 164,62 points.–Newsday.co.zw