Mixed fortunes in 2012 for SA firms in Zim
Harare - The Zimbabwe Stock Exchange (ZSE) closed the year 2012 slightly higher on Monday, after the main Industrials Index gained 4.48% to close at 152.40 points up from 145.86 points at the close of 2011.
The mining index however tumbled 35.33%, due to both poor operational performance by the listed stocks as well as the indigenisation crusade that saw most mining houses complying with the controversial indigenisation and economic empowerment policy.
Among the mining houses that complied with the law were Zimplats, owned by Impala Platinum Holdings [JSE:IMP], Mimosa owned by Acquarius Platinum [JSE:AQP] and Unki Mine owned by Anglo American [JSE:AGL].
Turnover on the Zimbabwean bourse was about US$442.55m, lifted by block deals worth a total $107.46m. Overall there were 45 block deals on the stock market this year, far fewer than the 75 deals which went through last year.
Beverage maker Delta Corporation owned by SABMiller [JSE:SAB] was one of the most traded stocks, getting more than $148.78m or 33.61% of the funds that were invested on the ZSE.
Delta was also the first Zimbabwean stock to reach the $1bn market capitalisation mark. Its closing market capitalisation of $1.2bn gives it a weight of 30.53% of the ZSE’s overall market capitalisation of $3.93bn. The stock gained 42.86% in the year.
National Foods, partially owned Tiger Brands [JSE:TBS], also had a good year after it gained 53.49% on the year. Pretoria Portland Cement [JSE:PPC] which is also listed on the JSE weakened on the year after it lost 4.76%. Its Zimbabwean subsidiaries had to comply with the empowerment act.
Hippo Valley Estates, in which Tongaat Hulett [JSE:TON] has a 50.3% stake, also had a poor performance as it lost 3.48% on the year. The Zimbabwean operations have been threatened several times by the country’s empowerment ministry for failure to comply with indigenisation laws.
Old Mutual [JSE:OML] - which supported the Zimbabwean government in the empowerment drive by providing funds to troubled companies and the youth - picked up 16.92% on the year but continues to trade at a huge discount to its JSE price levels.
Afrifresh-owned Ariston, though still making losses, fared reasonably well on the ZSE picking up 44.44% in 2012.
Investec’s investment in retailer OK Zimbabwe paid dividends as the stock was a darling for the market, picking up 50% in 2012. Edgars and Truworths however performed, badly dropping 11.11% and a massive 72.22% respectively.
The ZSE’s overall positive performance was not bad considering what the Zimbabwean economy had to go through as the parties in the government of national unity displayed their rampant appetite for rocking an already sinking ship.