Zimbabwe’s Industrial index closes April weaker

via Industrial index closes April weaker – NewsDay Zimbabwe May 6, 2014

THE market capitalisation and industrial index of the Zimbabwe Stock Exchange (ZSE) closed the month of April weaker as the under-performance of the economy persists.

The ZSE in April recorded market capitalisation of $4,47 billion after the market started the year at $4,8 billion.

While the industrial index declined to 172,91 points compared to 176,91 points in March after opening the year at 189,25 points this year, the mining index closed the month at 29,64 points from 29,51 points in March.

In a recent trading update, MMC Capital said the top 10 counters by market capitalisation held 76,80% and these include Delta, Econet, Innscor, Old Mutual, BAT, National Foods, Hippo Valley, Seed Co and TSL.
The top 10 counters hold $3,4 billion from a total market capitalisation of $4,4 billion.

“Our view is that the status quo of the market presents a good opportunity for long-term players as share prices remain depressed. In the short to medium term, however, the local bourse’s upside potential will be trimmed on the back of poor economic fundamentals,” the research firm reported.

The World Bank has said the growth in 2014 is expected to be at 3% due to headwinds from the global economy, low investment and weak growth of the mining sector. During the first two months of this year, market capitalisation increased by 0,5% to $4,9 billion as at February 28 2014.

During the first quarter, market capitalisation decreased by 4,3% to reach $4,5 billion.