Home » Business » ZSE Turnover Up 112 Percent

TURNOVER on the Zimbabwe Stock Exchange increased by 112,4 percent to $38,5 million in April with average daily trades for the month coming through at $1,98 million.Statistics compiled by equities analysts IH Securities for April show that most significant contributors to the turnover were Dawn (48 percent), Delta(19 percent) and Econet (10 percent).

The volume of shares traded during the period also rose markedly, rising by 62,3 percent to 589 million, but this was insufficient to lift Industrial and Minings indices.

The market remained subdued, falling 1,17 percent to close the month at total market capitalisation of $4,4 billion with the industrial index falling 1,24 percent to 156,25.

Industrials were weakened by a 2 percent loss in mobile telecoms operator, Econet Wireless and further losses in a number of mid cap-counters on the bourse.

The Mining Index stuttered in April, dropping 2,28 percent on the back of most weaknesses in Falgold, Hwange and RioZim in light of depressed global metal prices.

Turnover of shares traded on the stock exchange fell by 22,2 percent in the first quarter of this year compared to the same quarter last year as liquidity tightened.

Recent statistics from the ZSE show that about $90 million worth of turnover was recorded on the bourse in the first three months of last year against $70 million this year.

However, statistics painted a different picture on volumes, indicating that against the decline in value terms, the volumes increased to 586 million this year from 306 million.

Statistics also show that 2014 was more liquid than this year, at least thus far.

About trades valued at $63 million were handled in January 2014 against $16 million in 2015.

On the 2015 outlook, analysts anticipate financial results to be released in the coming weeks by Delta and Econet to show an environment that has remained difficult.

However, the price mark down by beverages maker Delta are expected to start to show steady volumes in an environment where liquidity has put pressure on demand.

The difficult economic situation has not been made better by developments in usually g out-turn in agriculture were production is forecast to drop by 33 percent on 2014.

The first crop assessment exercise showed that about 300 hectares of maize were written off due to poor rains in parts of the country with output seen below a million tonnes.

Zimbabwe Farmers Union and Commercial Farmers Union estimate that maize production will be 700 000 to 800 000 tonnes against national demand of 1,8 million tonnes.

The food and agriculture organisation estimates that Zimbabwe’s maize imports, like in many parts of the sub-region, will nearly double on anticipated supply deficit.

Source : The Herald