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Published On: Mon, Dec 8th, 2014

Delta, Econet dominate ZSE 2014 trades

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  • Zeco m’cap at $50,000, registers trades worth $169 in 11 months
  • Top 10 firms account for 85pct of total ZSE turnover

ZIMBABWE’S largest quoted company, Delta Corporation and telecoms heavyweight, Econet Wireless dominated trades on the bourse between January and November this year.

The development illustrates investors’ appetite for stocks with strong business models and shareholder support despite poor economic performance, figures obtained by The Source have shown.

The top ten stocks on the ZSE account for 85 percent of the $423 million turnover recorded during the period.

At the other end of the spectrum, penny stock Zeco remains the most unattractive counter on the ZSE after shares worth $169 exchanged hands in only four trades over the same period.

Beverage maker Delta, which accounts for a third of the $4,3 billion market, was the most sought after counter on the ZSE with just over 79 million shares trading for a turnover of nearly $95,9 million.

Econet Wireless was the second most traded counter, with 122,6 million shares worth $83,875 million.

Other counters that made the top 10 include Seedco ($53 million) whose value of trades was driven by the acquisition of a significant stake by French company Limagrain.

The takeover of BancABC by Atlas Mara, an investment company co-owned by former Barclays Plc chief executive Bob Diamond and African entrepreneur Ashish Thakkar, resulted in ABCH being the fourth most traded counter.

Conglomerate Innscor, CBZ, OK, DZHL, BAT and Zimplow are some of the top 10 traded firms.

Analysts say counters such as Barclays and Meikles did not make it to the top 10 because they are illiquid and tightly controlled.

The figures also show that 15 out of the 65 listed firms traded shares worth less than $100,000 during the period while 20 firms traded shares ranging from $1 million to $6 million.

Loss-making Zeco’s market capitalisation stands at around $50,000, the smallest of the listed counters with a share price of 0.01 cents.

Among the least traded counters are General Beltings; Border Timbers; RioZim and Falgold which registered trades worth $850,37; $3,303.40; $7,623.1 and $11,650 in that order.

Hotelier RTG is also among the least popular counters, with a turnover of $ 15,713.58. Others are Pelhams ($17,967) and CFI ($18,520).

 

Aggregate turnover for the 11 months was three percent lower at $423 million compared to the same period last year despite a flurry of block trades.

The number of shares that exchanged hands was flat at 2,7 billion shares. Turnover on a monthly basis averaged $34 million.

Analysts blame lack of clarity on indigenisation regulations compelling foreign investors to sell controlling stakes to locals for the underperformance of the bourse.THE SOURCE

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