Harare - February was a pretty gloomy month for the Zimbabwean equities market, despite both Zimbabwe Stock Exchange (ZSE) indices recording marginal gains.
From the January closing levels of 189.25 points for the main Industrial Index and 35.04 points for the Mining Index, the two sectors gained 0.11% and 11.99% to close at 189.45 points and 39.24 points respectively.
The marginal increase in the main Industrial Index is indicative of mixed trading during the period with the month falling in ten of the trading days and gaining in the other ten trading days.
The biggest worry was, however, in terms of turnover with just above $25.7m being invested on the Zimbabwe Stock Exchange.
This is a sharp drop from more than $63.9m that was invested in January. The average daily turnover was at $1.28m, down from $1.91m in January.
The results that were released by several companies although not impressive and sometimes lower than those reported last year were above market expectations.
International Bank Barclays’ results came out during the month and showed a 40% growth in earnings in the year to December 2013. The Bank further indicated that it would increase its lending levels in the FY2014.
Also to report its FY2013 earnings was British American Tobacco, with the cigarette maker reporting reduced volumes and earnings for the period under review. Bottom line earnings were only lower because the group accounted for expenses related to its indigenisation commitments.
Banking Group CBZ Holdings Limited also released its results late February showing subdued top line growth. The group's topline in the year to December 2013 was restricted with total income growing 4.4% to $150.5m.
Trading on the ZSE is likely to remain subdued for the rest of the year as the country continues to grapple with lack of portfolio investments,limited foreign direct investments and expensive lines of credit.
Companies have been struggling to make sales as consumer demand remain depressed amid retrenchments and irregular salary payments. The limited sales volumes have resulted in minimal growth rates making investment returns unattractive.
From the January closing levels of 189.25 points for the main Industrial Index and 35.04 points for the Mining Index, the two sectors gained 0.11% and 11.99% to close at 189.45 points and 39.24 points respectively.
The marginal increase in the main Industrial Index is indicative of mixed trading during the period with the month falling in ten of the trading days and gaining in the other ten trading days.
The biggest worry was, however, in terms of turnover with just above $25.7m being invested on the Zimbabwe Stock Exchange.
This is a sharp drop from more than $63.9m that was invested in January. The average daily turnover was at $1.28m, down from $1.91m in January.
The results that were released by several companies although not impressive and sometimes lower than those reported last year were above market expectations.
International Bank Barclays’ results came out during the month and showed a 40% growth in earnings in the year to December 2013. The Bank further indicated that it would increase its lending levels in the FY2014.
Also to report its FY2013 earnings was British American Tobacco, with the cigarette maker reporting reduced volumes and earnings for the period under review. Bottom line earnings were only lower because the group accounted for expenses related to its indigenisation commitments.
Banking Group CBZ Holdings Limited also released its results late February showing subdued top line growth. The group's topline in the year to December 2013 was restricted with total income growing 4.4% to $150.5m.
Trading on the ZSE is likely to remain subdued for the rest of the year as the country continues to grapple with lack of portfolio investments,limited foreign direct investments and expensive lines of credit.
Companies have been struggling to make sales as consumer demand remain depressed amid retrenchments and irregular salary payments. The limited sales volumes have resulted in minimal growth rates making investment returns unattractive.