HomeBusinessvalue of shares increases on ZSE

value of shares increases on ZSE

This was driven mainly by bargain hunters preying on the bourse.

In the same period last year, US$116 405 152,19 worth of shares exchanged hands. According to statistics from ZSE, 798 899 035 shares were traded in the first quarter of 2012 down from 892 237 105 shares that exchanged hands in the same period last year.

However, due to high value transactions that went through special bargains, this made the 2012 value better than last year.

A special bargain occurs where buyers on the stock market purchase huge chunks of shares at a special price agreed by the seller. In most cases, the prices were at a premium of the prevailing trading price.

The high-value transactions were driven mainly by foreign investors taking advantage of the liquidity constraints facing locals.

In the first three months of the year, ZSE witnessed special bargains in the shares of Econet, Delta, Meikles, Fidelity, Old Mutual, Afre, TSL, Hippo and Padenga.

Analysts attribute the high number of special bargains to a host of issues such as investors rationalising their portfolios and foreclosing when loans have gone bad.

They also say it could be a result of latecomers beginning to buy Zimbabwe assets from companies that are realising profits.

At the rate at which special bargains are occurring on ZSE, analysts say the stock market would surpass last year’s data when 75 special bargain deals valued at about US$101 million went through.

The second quarter of the year has also witnessed special bargains in Ariston, OK and Hippo. — BY OUR STAFF

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