Stock market loses further ground as hopes of economic stimulus fade

1932688 664450863596871 2088411395 o
1932688 664450863596871 2088411395 o

HARARE – (FinX) – The stock market lost further ground on Tuesday as hopes for an economic stimulus continue to fade along with the deteriorating exchange rate. Trading was mostly red though the loss at close was marginal. The ZSE All Share and the Industrials Indices lost 0.49% and 0.48% to 231.33 and 770.06 respectively.

With just 21 days to go before the end of the year, a strong majority of stocks have witnessed negative real returns with the value of shares not having moved to sufficiently cover for inflation.

Turnover for the day was at $12.56 million (or US$763717.26) in 174 trades. Econet was the most active with 20 trades but the counter closed with a 2.61% loss to 149.53c. Foreigners were net buyers at $467 226.92 against sales of $233 304.30.

The ZSE Top 10 Index was near flat at 206.42, paring just 0.01% as gains in Old Mutual and Cassava were offset by marginal losses in the other counters. Cassava added 3.73% to 147.58c and Old Mutual put on 3.84% to 3538.07c and was the biggest contributor to turnover at $9.6 million.

Second tier stocks made up the worst performers table; Turnall led with a 16.68% fall to 10.29c and Powerspeed was 16.22% lower to 31c. African Sun fell 13.33% to 26c taking its year to date gain to 137.44%.  Mash Holdings fell 10.24% to 8.33c.

Meikles, with an EGM this Friday to vote on the sale of its flagship hotel, was up 0.22% to 224.78c. It has so far gained 340.75% this year.

Meanwhile, National Tyre Services Limited (NTS) says it is still in the process of creating a property division, with little progress made so far.

Previously, the firm highlighted that it had a good property portfolio which it can leverage on. The property division is envisaged to boost the firm’s revenue.

Without giving any timelines, acting managing director Benson Samudzimu said: “We have not done much yet, we are going through certain processes,” he said.

Risers           Price              %Change
Old Mutual    $35.3807       3.84%▲
Cassava       $1.4758          3.73%▲
Simbisa        $1.2825         0.86%▲
Meikles        $2.2478          0.22%▲
Proplastics  $0.8350           0.22%▲


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