STOCKS barely moved in the month of September as investor sentiment remained unchanging on liquidity constraints, albeit improvements in turnover and volumes.The mainstream industrial index lost a marginal 0,08 percent to close the month at 98,96 as it struggles to breach the psychological 100 level.The less active mining index of four counters — Bindura, Hwange, Falgold and RioZim inched up 1,10 percent to 26,61.
By close of the month both volumes and values had improved compared to previous month. A total 53 million shares exchanged hands in the month, 53 percent higher than August volumes. Turnover for the month was $12 million compared to $7 million achieved in August, which was the weakest since January 2015.
Trades in the month was dominated by top cap counters, Delta, Innscor, Econet, CBZ and Fidelity Life. The beverages maker — Delta — which lost 4,75 percent of value to close at 60 cents, contributed $7,078 million in the month.
Industrial conglomerate, Innscor trailed behind at $1,68 million. The company reported revenue for the full year to June 30, 2016 rose 6 percent to $586 million compared to prior year on improved efficiencies and volumes growth across portfolios.
Innscor, which was also the month’s top gainer after rising 20 percent to 23 cents had 7,229 million of its shares exchange hands in the month.
Old Mutual, Turnall, Padenga and Axia were among the top risers for the month chipping in with respectable contributions to aggregates. Axia, which reported its first set of financial since unbundling from Innscor said net profit for the three months to June amounted to $2,3 million.
The month was, however, not short of losers. The biggest losses were recorded by cement producer PPC which weakened by 33 percent to 40 cents followed by Dairibord which lost 20 percent value to 3,60 cents. Art Corporation, Lafarge and Simbisa Brands also made up the list of bears for the month.
The quick service restaurant firm reported a 23 percent drop in after tax profit to $3 million in the nine months to June 2016, from $3,9 million in comparable period last year as regional operations performed below expectations.
However, Simbisa opened 50 new counters across Africa in the nine months to June 2016 as the group seeks to expand its regional footprint and spread risk.
The stock market has been on a free fall since January 2015 on economic challenges.On a year- to-date basis, stocks have weakened by 13,9 percent as the equities market remain largely subdued due to a myriad of challenges among them low liquidity, deflationary pressures and low industry capacity.
But the resources index gained 12,41 percent since beginning of the year although, it has largely remained less active on the back of shaky global commodity prices.
Market watchers are of the view the current performance of the stock market is in line with the economic environment, which is characterised by low consumer spend, low aggregate demand, deflation and liquidity constraints.
“The performance of stock markets in most countries is a barometer of the performance of that economy,” said Africa University economist Mr Thomas Masese.
“The current performance on ZSE is in sympathy with the weak state of the economy.Investing on Zimbabwe Stock Exchange entails a significantly higher degree of country and political risk than does investing in most African markets and most risk averse investors have been shying away from investing on the market,” he said.