zim stock xchange 20.10.jpgWith a shortage of cash on the money market, analysts are not striking the panic button as yet, citing the presence of more sellers than buyers’ scenario as the main cause for the prevailing atmosphere at the Zimbabwe Stock Exchange.

 

With the industrial index closing at 123,27 while its mining counterpart was at 131,56 today, a notable number of counters made gains on the local bourse.

 

Notable risers as business began on a rather luck luster performance this week were Interfin, Riozim, ZHL, Lafarge, Starafrica, Cairns, PPC, DZHL, Dawn and Afre.

 

The top fallers included GB Holdings, Ariston, Cafca, ZBH, FalconGold, Murray and Roberts, Hippo, Hwange, PG and Econet.

 

Analyst Mr. Nhlanhla Nyathi of TN Asset Management noted that with business coming from a hyper-inflationary background, there is a lot of movement of liquid cash from the money market  with the cash now being channeled to fund core activities unlike in the past where cash was used in speculative purposes for non core activities or as an inflation hedge.

 

He also noted a trend where the business sector has moved back to the fundamentals that guide businesses which operate in stable environments and cited it as the main reason for the slow activity on the local money market.

 

The Zimbabwe Stock Exchange Index has been on an upward trend in the last five days, save for the beginning of yesterday, where it dropped from last Friday’s almost 30 600 to yesterday’s below 30 500.

 

However, there is hope that the recent decision by the Kimberley Processing Certificate Scheme to allow Zimbabwe to sell the Chiadzwa diamonds will boost the country’s revenues, thereby adding a direct value to all investment portfolios.