2015 1Q Report: Weakness Persists

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[title size=”2″]….2015 1Q Report: Weakness Persists[/title] [checklist icon=”angle-right” iconcolor=”” circle=”yes”

o Weakness Persits: The first quarter of 2015 was characterised by weaknesses for both the country’s economy and the equities market. The period was characterised by low production levels in key sectors such as mining, agricultural and manufacturing,  as well as low commodity prices for key exports such as minerals and tobacco. Activity on the ZSE followed the same trend recording its lowest first quarter turnover since 2009.

o Equity Market Performance: Characterised by investor apathy for most of the period under review, the main industrials recorded a loss of 2.81% to 158.22 points as at 31 March 2015, while the mining index was worse off dropping 38.74% to 43.93 points for the same period.

o Earnings season: The latest earnings season did not bring any relief to the struggling market as it brought out more evidence of a struggling economy. The bulk of the companies that reported showed increased signs of stress.

o Outlook & Prediction: We do not expect the economy to get any major boost in 2015.  We continue to see a slowdown in economic activity and this will result in further decline in aggregate demand. While government is working around the clock to get the much needed capital and financial help, we do not believe the impact will be felt in 2015.

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By |April 10th, 2015|Categories: Investor Alert|

About the Author:

Kudzanai Sharara
Kudzanai’s background in financial journalism with ZFN, combined with a continuing education in financial management, provide a solid grounding for his work in the research department.