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Econet bucks trend on Zimbabwe exchange

By , Journalist
Zimbabwe , 03 Feb 2016

Econet bucks trend on Zimbabwe exchange

Econet Wireless is bucking negative investor sentiment and a persistent slide on the Zimbabwe Stock Exchange having notched up the highest value in trades on the market in January.

Econet contributed 47% in trade values for the month of January at a time when other blue chip stocks on the bourse are struggling and recording value declines. Trade values in Econet amounted to $5.4 million as investors remain interested in the company.

"The Industrial Index was down 10.28% to 103.04 weighed down by losses in Delta, down 24.98% and Innscor, down 320.91%, offsetting an 8.91% gain in Econet Wireless," analysts at IH Securities said in a market report for the month.

They added that "activity was depressed in January as turnover dropped by 30.37% to $11.36 million" while average daily trades for the month came in at $568 000 and "Econet, Delta and Simbisa (making) the biggest contribution to total value traded.

Econet is Zimbabwe's biggest telecommunications company with up to 9 million registered subscribers on its network. It also runs over the top services such as mobile money, social media access bundles and agriculture insurance.

In Tuesday trade, Econet was weaker and Lynton Edwards said "it was on the downside" after shedding 4.22% to 22 cents. This signalled one of its lower sessions this year as it has largely bucked the trend of declining values and share volumes.

Getbucks, a newly listed financial services company on the ZSE received its first trade yesterday after listing more than two weeks ago.

Market traders are expecting financial performance by ZSE companies, including Econet, to fall further this year.

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