The ZSE Monitor: Insurance companies miss out on ZSE recovery
Harare, As the industrial index resumed the upward trend in mid-week trading session, only two insurance companies were active though with little contribution to the positive trajectory.
First Mutual Holdings traded flat at 11cents with a total 106 258 shares changing hands at a value of $11 688.33. On other hand, giant Old Mutual Plc was among today’s top losers after losing $0.0027 to close at $3.9273.
According to a summary Zimbabwe Insurance Report by research company BMI, Growth of the Zimbabwean life insurance market is expected in double-digit figures over the next five years from 2017 with low inflation supporting real term increases although this will be from a low base and is vulnerable to economic shocks.
On other hand, gross non-life premiums will grow at an annual rate of 9.1%, revised up from 6.2% since the previous quarter, and reach $252mln, equating to per capita premiums of $14.50 and giving a penetration rate of 1.7% (premiums against GDP).
This just points to a scenario where the insurance companies need to upgrade and introduced new products to move in tandem with anticipated growth.
Meanwhile, there was no activity in the shares of Fidelity Life Assurance, Nicozdiamond Insurance and Zimre Holdings.
Other companies who have insurance units FBC, ZB and Getbucks also did not trade.
However, the Industrial Index resumed the upward trend after adding 0.65 points (0.33%) to settle at 198.55 points in a session characterized by widespread activity.
CFI which is part of Zimre Holdings units led the movers with a $0.0430 to close at $0.2590, HIPPO (HIPO.zw) and PPC (PPC.zw) both went up by $0.0200 to trade at $0.8700 and $0.7100 respectively. SEEDCO (SEED.zw) put on $0.0088 to $1.2613 whilst PROPLASTICS (PROL.zw) added $0.0049 to end at $0.0599.
Apart from Old Mutual, losses were seen in three other PADENGA (PHL.zw) which came off $0.0010 to trade at $0.2730. UNIFREIGHT (UNIF.zw) shed $0.0009 to $0.0111 while BARCLAYS (BARC.zw) closed at $0.0425 following a $0.0005 loss.
The Mining index retreated 0.19 points (0.27%) to close at 69.00 after RIOZIM (RIOZ.zw) eased $0.0025 to trade at $0.5500. BINDURA (BIND.zw), FALGOLD (FALG.zw) and HWANGE (HCCL.zw) remained unchanged at previous trading levels at $0.0290, $0.0100 and $0.0250 respectively.
Insurance24/ZSE
