BUSINESS WRITER 13 November 2018
HARARE – Foreign investors were net buyers of $1,3 million shares on the
Zimbabwe Stock Exchange (ZSE) in last week, with particular interest in
Old Mutual and Delta Corporation.
According to figures from the local bourse, foreign purchases accounted
for $13,3 million worth of shares while sales amounted to $20,8 million
during the period under review.
Of the $13,3 million shares bought, Old Mutual accounted for $866 680
million and Delta $439 440.
The other two counters to record positive net buying were African Sun $10
032 and Starafrica corporation $1 169.
Old Mutual’s return to the ZSE in June after the parent company completed
a restructuring process, which ended its 19-year stint on the London Stock
Exchange, is still attracting interest from foreigners.
Old Mutual shares were listed on the Johannesburg Stock Exchange with a
secondary listing on the Nairobi Securities Exchange (ZSE) and the Malawi
The listed assurer split the group into four independent businesses Old
Mutual Emerging Markets, NedBank Group, Old Mutual Wealth and Old Mutual
Asset Management as part of a strategy to unlock and create significant
long-term value as well as removing the significant costs arising from the
current structure following the introduction of bond notes in November
Old Mutual has said it has plans to venture into the tourism industry
after acquiring 6,6 hectares of land in Victoria Falls.
The company is reportedly still in negotiations with the Victoria Falls
municipality to get approval to construct a tourism-related facility in
the resort town.
Old Mutual has also been expanding its green zone concept. The green zone
concept offers the group’s clients financial and banking services under
Jonas Mushosho, the group’s chief executive, said the expansion
demonstrated the financial service group’s commitment to Zimbabwe, and
Stock brokers say interest in Delta could be a result of the company’s
consistency in continuously engaging government and the financial sector
to find ways of addressing foreign currency shortages that affects its
Delta last Wednesday recorded a 77 percent increase in after tax profit to
$57,2 million in the half year to September 30, 2018, driven by increased
The beverages maker saw its revenue increase by 37 percent to $341,4
million, compared to $250,1 million recorded same period last year after
lager beer volumes grew by 54 percent, sorghum beer two percent and
sparkling beverages three percent.
As a result, EBITDA increased 54 percent to $81,8 million, while earnings
per share rose 75 percent to $4,63 cents.
Pearson Gowero, the group’s chief executive, told analysts that while
performance was firm across all units, the company is facing various
“The company had an exceptional performance notwithstanding the currency
shortages that slowed the Chibuku and soft drinks businesses,” he said.
He added that during the period under review, consumer demand was firm and
the company has maintained stable retail prices since 2013.
Gowero noted that operating income increased 73 percent over prior year’s,
driven by a buoyant Chibuku Super contribution in the sorghum beer