Hive Of Activity At ZSE
HARARE – A total of US$ 3.4 million changed hands on the Zimbabwe Stock Exchange (ZSE) in the first quarter of the year since the stock market started trading in USd on February 19, a report by a leading stock broking firm shows.
The report by Kingdom Stockbrokers (KSB) showed that value of trade had been averaging US$ 100 000 a day and is improving as the quarter progresses.
“Value of trades has been averaging about US$ 100,000 in the quarter although they seemed to be improving as the quarter ended,” KSB said. “As at 31 March 2009 a total of US$ 3.4 million had exchanged hands since the market started trading in US dollars.”
KSB said investors maintained their confidence in the blue chips counters.
“Investors maintained their confidence in blue chip counters as 30.6 percent of the money went into Old mutual, 14 percent into Econet, 10 percent into Delta, 7 percent into Innscor, 3.6 percent into Star Africa and 3.4 percent into Kingdom Meikles,” KSB said.
Trade on ZSE resumed in February after more than two months when some traders were found to be putting buying orders to purchase shares when their accounts were not adequately funded.
There were also problems with the Real Time Gross Settlement (RTGS) system, which resulted in money transferred to stockbrokers by share buyers failing to go through.
In the outlook period KSB said though companies are still adjusting to foreign currency salaries and there very few people with free funds, investors should buy shares on the stock market as their prices will go up when the market finds the right prices.
“Once these prices stabilize steady rises and falls, with single digit margins, will be recorded,” KSB said.
KSB said there is need to amend the Exchange Control Act to allow investors to repatriate their funds smoothly and with ease, at a time when they feel they need to go back home.
But it warned that foreign investors, reeling from the global financial crisis, will take some time to invest on ZSE and this will affect activities on the bourse. “Without financial aid, the market is likely to continue moving sideways,” KSB said.