Equities
Stock broking firm, Invictus Securities recently noted that in times of increasing uncertainty, investors find safety in size. This has been true as the strong stock market rally since last October has seen investors coalesce around blue chip stocks such as Delta, Econet, BAT; National Foods and Old Mutual, and in property stocks such as Pearl Properties.
Investors have tilted their portfolios to be more protective, reallocating assets from fixed income market to the equities market.
Bargain hunters are targeting large corporations with prospects of a quick turnaround despite current poor economic fundamentals.
The June 20 imports ban will benefit the light manufacturing industry which points to a promising future for Natfoods, Innscor, and Dairibord. Exporting companies such as Padenga are seen as prime.
Mobile and technology group Econet is seen as a price asset. Analysts feel the group is building a sustainable growth business model that could reward long term investors. It has tailored its operations away from voice with key investments such as health (EcoHealth), retail (Ownai), financial services (Ecocash), insurance (Ecosure), education (Ruzivo) and media ( KweseTV).
Meikles, Getbucks, Simbisa Brands and banks are all seen as safe bets.
On the mining space, analysts are watching Bindura and RioZim and expect the 5 percent export incentive to add up to the fortunes of these counters especially if commodity prices remain stable.
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