Recent full year financial results by listed counters have failed to stimulate the local bourse, with share prices of most counters remaining low given the tight liquidity in the market.
The Zimbabwe Stock Exchange (ZSE), which is currently hovering around US$4,2 billion market capitalisation, has failed to positively respond to financial results released by most counters with little movement in shares prices.
Results released by several listed corporates show companies posted profits with differing margins.Â
Seed-Co posting a positive US$17,4 million profit after tax, OK Zimbabwe registering US$4,2 million, blue chip counter, Econet US$141 million, while African Sun had a US$91000.
Sugar manufacturing concern, StarAfrica Corporation was however among the worst performers, registering a US$16,4 million.Â
Economic analyst, Mr Christopher Mugaga believes that the local bourse, which continues to be dominated by 10 counters, will remain sluggish in the second half of the year due to liquidity crunch and lack of participation by foreign investors.
10 counters dominate the bourse among them Delta, Econet, Innscor, Hippo and Seed-Co accounting for 65% of the total market capitalisation.
Meanwhile, the industrial index closed the last week lower at 165,87 points after it fell by 1,31 points due to losses in mainly heavy weight counters.
At its close, the mining index gave up 0,65 points (0,38%) to close at 170,67 points.
The fall means that the mining index dropped a significant 12,20 points (6,67%) compared to week ending 24 June 2011.