LES Monthly Market Update

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o By the close of August 2015, the main Industrials Index was down 5.25% to 135.43 points while the mining Index was down 10.21% to 35.34 points. The Industrials last traded below current levels as far back as 3 September 2012 when it traded at 132.82 points before jumping to 136.42 points the next day.

o A total $15.2 million worth of shares were traded during the period under review. This is the second lowest turnover for the year after $14.5 million was traded in June. Total turnover of $172 million for the eight months to August is now down 47.23% from $326 million that had been traded for the comparable prior year. The overall market capitalisation which was at $5.2 billion in August 2014 is now down 32.69% (or %1.7 billion less) at $3.5 billion.

o At the moment local stocks don’t have a clear growth catalyst. News that most big cap companies , such as Delta and Econet, are looking at streamlining operations points towards tough trading conditions in the economy with very few opportunities for growth.

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By |September 1st, 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.