HARARE - The Zimbabwe Stock Exchange (ZSE) turnover for the month of May marginally rose by 1,92 percent to $14,3 million after it tumbled 14,5 percent in April, a local research firm has said.
Equities firm IH Securities (IH) in its snapshot for May said average daily trades of $715 770 were realised in the month as the total volume traded slumped 47,3 percent to $4,9 million.
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“The most significant contributions to total value traded were Delta Corporation, Simbisa Brands, National Foods, contributing 40 percent, 12 percent and 12 percent respectively,” IH said.
In the month under review, the market fell 0,26 percent to close at a total market capitalisation of $4,29 billion.
“The industrial index was down 1,03 percent weighed down by an 8,08 percent loss in Econet Wireless Zimbabwe (Econet) despite gains in British America Tobacco(BAT) and Delta of 0,41 percent and 1,43 percent respectively,” IH added.
On the back of gains in RioZim and Bindura, the mining index rose 26,69 percent on the back of gains in RioZim, up 46,36 percent and 17,65 percent respectively.
Other notable gains were recorded in Nampak Zimbabwe, up 20 percent, Proplastics Limited, up 9,09 percent and Meikles Limited up 6,44 percent.
“The month’s biggest losses were seen in Barclays Bank Zimbabwe down 18,64 percent, Star Africa Limited, down 16 percent, Willdale Limited down 10 percent, Pearl Properties, down 9,09 percent and Hippo Valley, down 9,09 percent,” the group said.
This comes as the market returned to the green in the month of April, as it rose for the first time since February 2015; with total market capitalisation closing 7,91 percent higher month-on-month at $3 billion.
In March, the bourse was on a downward trajectory shedding 1,3 percent of total market capitalisation to close the at $2,8 billion. According to IH, ZSE’s industrial index was down 1,9 percent to 97,61.
The ZSE — which has been on a downward trajectory since February 2015 — recorded better fortunes in monthly flows after turnover rose 4,4 percent to $16,4 million as average daily trades for March came in at $782 430.
The market started recording its rebounds in the second week of April after gaining 0,30 percent to close the week at a total market capitalisation of $2,285 billion as the industrial index, at 98,65, was driven by a 1,17 percent gain in Delta.
Despite the gains in April and May, analysts maintain that the subdued trading on the bourse will remain depressed in the medium term due to diminishing investor confidence and tight liquidity.
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