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Econet stock draws strong investor interest

By , Journalist
Zimbabwe , 07 Jan 2016

Econet stock draws strong investor interest

There is strong investor interest and trade in Econet Wireless on the Zimbabwe Stock Exchange and analysts expect this trend to continue as investors weigh their options on the other stocks on the country's bourse.

However, Econet's interim profits for the half year to end August 2015 tumbled by a massive 52% to 23.8 million. The company has decided to focus on increased diversification of revenue generating streams, earmarking enhanced focus on data and other value-added services.

"We expect activity to remain focused in Econet..., with price expected to remain stable," said analysts at IH Securities in a market update this week.

On Wednesday, turnover on the ZSE firmed up to $1.1 million although analysts at Lynton Edwards Stockbrokers said prices had remained weaker. The analysts said "big cap stocks Delta and Econet traded little changed having lost 0.71% and 0.05% respectively" in Wednesday trade.

"Econet got the bulk of the investments after 2.6 million shares worth $559 381 changed hands at 21.02 cents," Lynton Edwards said in a market report. Econet has a market capitalisation of $191 million on the ZSE.

Econet Wireless, the biggest telecommunications company in Zimbabwe, has over 9 million subscribers on its mobile network and around 5 million registered users for its mobile money application, EcoCash.

It has disconnected up to 1 million unregistered network subscribers in line with new requirements that require subscribers to be registered.

MTN Nigeria continues to make headlines following the hefty fine it received from the Nigerian Communications Commission (NCC) for failure to disconnect unregistered subscribers on its network.

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