Election sentiment slowly filtering into market.. ZSE weaker in weeks opener.. Insurers remain inactive
Harare, Insurers listed on the Zimbabwe Stock Exchange (ZSE) were largely in the same mode with the market which was characterized by limited activity across the counters during the week’s opening session.
Only Old Mutual traded with a total 28.250 shares exchanging hands in a market which is showing signs of renewed buying interest in heavy weight counters that also included Econet and Innscor.
Other insurers, Fidelity Life Assurance which is reportedly due to release its financials anytime this week did not trade. FMHL and Nicozdiamond also did not trade while ZHL was also stagnant with no activity.
Following the establishment of a new government last year November, there has been increased investment sentiment in the country. However, the electoral sentiment is slowly crippling into the capital markets leading to slowing activity.
Investment inflows if any are expected after the harmonized elections which are expected to have been held by the end August 2018, as investors wait for Zimbabwe to conclude this critical national event.
Sentiment currently remains very positive due to current government assurances to the global community that it will do all it can to ensure that the elections are free, fair and credible.
Meanwhile, market capitalization is currently at $8.37 bln from as high as $15 bln late last year due to a sentimental bull-run. In today’s session, activity was limited to only 26 trades. Foreign sales amounted to $264,707 while foreign buys at $159,642. Turnover for the day closed at $822,825largely due to decent trade values in Econet, Innscor and OM.
The All Share Index added a marginal 0.633 points on the back of gains in Econet, Innscor and Simbisa.
The Industrial Index added 2.14 points while the Top Ten Index closed the day 0.76 points firmer. The Mining Index was unchanged at previous levels.
Econet went up by $0.0287 to close at $0.7000, CBZ Holdings and NMB Holdings both added $0.0100 to trade at $0.1100 and $0.1000 respectively. The three companies have within their operations insurance units. Elsewhere, Simbisa rose by $0.0085 to $0.3675; Innscor went up by $0.0047 to end at $0.9675 while Proplastics was $0.0010 firmer at $0.0740.
By the close of trading two counters lost ground; Old Mutual dropped $0.0026 to close at $5.6200 and Mashonaland Holdings shed 0.0020 to settle at $0.0250.