Home » Industry » Imara Zimbabwe Fund Declines 9 percent

THE Imara Zimbabwe Fund declined 9 percent in April this year to $19,2 million compared to the previous month after share prices of its leading holdings slumped.

In terms of share price moves over the month, “blue chips” Delta Corporation and Econet Wireless were down 6 percent and 5 percent respectively, Seed Co fell by 11 percent, Barclays declined by 15 percent and Innscor dropped 20 percent, the pan-African securities trading corporate finance asset management said in its monthly report. There were few risers, although Dawn Properties and Ariston Holdings managed 15 percent and 10 percent gains respectively. Imara’s top five holdings in the ZSE listed companies are Delta which constitute 13,3 percent of the fund, British America Tobacco, 13 percent, Econet, 8,7 percent, Seed Co, 8,4 percent and Innscor, 6,7 percent.

Sentiment on the local bourse has been on a free fall, bearing testimony to the dwindling appetite for local shares, affecting the viability of stockbroking companies. The stock market is also at the mercy of wider prevailing economic challenges.

“Not a great way to end the quarter, especially as there was very little negative news in Zimbabwe to prompt the sell-off,” said Imara. “The Fund has fallen by 9 percent for the quarter as a whole, against an (ZSE industrial) index fall of the same amount. Stocks were initially sold down on retail selling but lower prices then encouraged institutional buying, largely from foreign investors on good volumes.”

The most notable positive news item came soon after the month following the announcement that former Barclays Plc chief executive Mr Bob Diamond together with his partner and African billionaire Mr Ashish Thakkar were to take over majority stake in banking group, BancABC through their investment vehicles, Atlas Mara.

While BancABC is registered in Botswana and also primarily listed there, its roots and management are very firmly Zimbabwean and it was therefore significant that they choose Harare to present the deal on the market. Atlas Mara was established in December last year through Initial Public Offer on the London Stock Exchange.

Many of the primary investors are the US institutions, most of them who have apparently never invested in Africa before. The deal involved taking over the principal shareholder of ADC of Germany and making offer to BancABC investors on the Zimbabwe Stock Exchange and the Botswana Stock Exchange at a good premium.

Once the deal is concluded, Atlas Mara will inject $100 million in the regional bank.

Source : The Herald