ZSE continues to be subdued

The Zimbabwe Stock Exchange continued to be subdued as investors awaited the 2004 budget due to be tabled on November 20. Even the appointment of a new governor for the central bank, after nearly five months of speculation, did not rekindle the market.

The industrial index which stood at 639 308.5 points at the end of September was down to 616 244.2 on 29 October. The increase since the beginning of the year was 495 percent, just slightly ahead of inflation for September. Interest rates have been on the rise and are now around 160 percent.

The number of companies performing below inflation remained at 26 with Dawn properties still anchoring the worst performers. Its price is down 26 percent. Barbican remained the second worst performer with a 78 percent price rise since the beginning of the year. In third place was Powerspeed with 106 percent, while another bank, Barclays, was in fourth place.

Barclays has been carrying out a major restructuring exercise which has seen it closing several branches in the major centers. Some of the branches have been bought by Royal Bank while others have been taken over by Century Bank.

Zimnat Lion was in fifth place though it contributed more than 60 percent of TA Holdings’ revenue.

Rio Tinto Zimbabwe remained the top performer with a 4471 percent price hike since the beginning of the year. In second spot was Clan which should be changing name to Pioneer Africa Corporation. The company is aiming to become the preferred transporter within the SADC region and seems to be on track. Its price has risen by 4305 percent since the beginning of the year.

Falgold and its parent company Falcon Investment remained in the top five with Falgold at number three and Falcon at number five. Sugar distributor, ZSR was at number four.

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