Foreigners stick it out on the ZSE

By |May 8th, 2014|Categories: Research|

The Zimbabwe Stock Exchange trades were skewed negatively for much of the first quarter as fundamentals remained weak to negative. The country’s economy is weakening by the day amid reports that companies are closing shop, while others are retrenching and downsizing operations. Consumer demand has also been on the decline amid waning disposable incomes. The country’s revenue collector, ZIMRA, recently

Is QE3 on the horizon?

By |February 7th, 2012|Categories: Markets, Research|

The US economy continues to show signs of recovery, and this bodes well for emerging and frontier markets. Federal Reserve Chairman Ben Bernanke announced this week that the central bank was willing to provide a further economic stimulus and is likely to maintain interest rates near zero until late 2014 at the latest. This development, in conjunction with other positive

Dangerously high interest rates

By |January 31st, 2012|Categories: Markets, Research|

The risk to banks when they increase lending rates but maintain a short tenure for repayment, is to place the companies they lend to under greater strain. There must be a tipping point when an increase in interest rates beyond some hurdle actually prejudices the bank itself by making default more likely. Of course the interest rate charged to companies

Q3 review, and the growing preference for small caps

By |October 18th, 2011|Categories: Markets, Research|

[imageframe lightbox="no" style="none" bordercolor="" bordersize="0px" stylecolor="" align="left" animation_type="0" animation_direction="down" animation_speed="0.1"][/imageframe] The just-ended third quarter has been a rough ride for investors on the ZSE, as well as stock markets globally. A number of analysts have pointed out in recent weeks that Zimbabwe is not immune to the developments occurring in the rest of the world, and this is evident when

Economy recovering in fits and starts

By |September 13th, 2011|Categories: Markets, Research|

The economy appears to be recovering in fits and starts, with different sectors leading the way. A look at the performance of the listed companies on the ZSE provides a glimpse into the economy as a whole, and the factors affecting each sector. Many would have guessed that the retail sector would perform the best this year, rising 35% in

Time to buy in emerging markets?

By |August 17th, 2011|Categories: Company, Research|

The US credit downgrade, as well as the European debt crisis, have thrown international markets into turmoil. The international financial universe is looking considerably weaker, and many are scratching their heads as they look for a solid investment in this age of uncertainty. For many, the emerging markets have held the promise of strong growth and relative stability as financial

Gold stocks have never been cheaper

By |May 12th, 2011|Categories: Markets, Research|

The gold price has soared in recent months over fears of a double dip recession, with investors seeking security in a tangible asset. However, some savvy investors have noticed the effect that the high gold prices will have on gold stocks, and have put their money into mining concerns focused on the precious metal. It’s only logical that as the