Foreign investors chase after Old Mutual shares

Foreign investors chase after Old Mutual shares
Published: 23 July 2018
FOREIGN investors were net buyers of $13 million shares on the Zimbabwe Stock Exchange (ZSE) in June, with particular interest in Old Mutual Limited.

According to figures from the ZSE, foreign purchases accounted for $25,1 million worth of shares while sales amounted to $11,9 million during the period under review.

Of the $25,1 million shares, Old Mutual accounted for $8,3 million, Delta $3,2 million, Innscor $719 852, Econet Wireless $295 992 and FBC Holdings $222 679.

Stock brokers say interest in Old Mutual shares could be a result of the group breaking up its vast financial empire into four strategic units.

Old Mutual Limited returned to the ZSE last month after the parent company completed a restructuring process which ended its 19-year stint on the London Stock Exchange.

Old Mutual plc shares were listed on the Johannesburg Stock Exchange with a secondary listing on the ZSE, Nairobi Securities Exchange and the Malawi Stock Exchange.

Old Mutual plc split the group into four independent businesses - Old Mutual Emerging Markets, NedBank Group, Old Mutual Wealth and Old Mutual Asset Management - as part of a strategy to unlock and create significant long-term value as well as removing the significant costs arising from the current structure following the introduction of bond notes in November 2016.

Meanwhile, the local bourse shed 4,2 percent in June to close with total market capitalisation of $10,7 billion following a bloodbath in stalwart counters Delta Beverages and Innscor.

In its June snapshot, IH Securities said the losses in Delta and conglomerate Innscor weighed down the market and offset a 10,05 percent gain in telecoms giant Econet, leaving the industrial index at 342,79, down 4,14 percent.

In the month under review, Delta shed 13,04 percent while Innscor lost 9,23 percent.

The All Share Index dropped 5,72 percent to 102,10 while the Top 10 Index also shed 7,10 percent to 103,31.

Significant top gainers in the month were Unifreight, up 44 percent, Edgars, up 25 percent, Fidelity Life, up 20,12 percent, African Sun, up 20 percent and Zimpapers, which went up 18,75 percent.

Losses were observed in diversified giant Old Mutual, down 35,29 percent, Willdale, down 33,67 percent, Seedco, down 26,53 percent and PPC which shed 20 percent.

"The Mining Index gained 6,42 percent to 161,28 on the back of a 10,37 percent gain in RioZim, offsetting a 3,29 percent loss in Bindura (BIND: ZH)," IH said.

In June, turnover increased 24,84 percent to $75,16 million, with average daily trades of $3,58 million realised during the month.

The most significant contributions to total value traded were Econet and Old Mutual and Delta, contributing 19 percent, 18 percent and 15 percent respectively.

Total volume traded was up 83,78 percent to 234,87 million shares.

However, the bourse has managed to open the second half of 2018 in the black as all the benchmark indices opened July pointing northwards, with the primary All Share Index 0,75 percent higher at 102,87 points on the month's first trading day.

According to local equities firm, Efe Securities, the Industrials and Top Ten indices ended in the black at 345,41 points and 104,44 points after posting respective gains of 0,76 percent and 1,09 percent.

The market gained 1,15 percent to close the day at a total market capitalisation of $10,94 billion.

At 161,28 points, the Mining Index was stable as diversified concern RioZim and Bindura traded unchanged.

On the opening day, price movements were seen in 16 stocks distributed into four risers and six decliners as the market closed with a negative breadth.

Leading the market charge was Telecom giant Econet, firming 4,86 percent to close at a volume weighted average price of $1,0949. Plastics manufacturer Proplastics followed on a 2,37 percent rise to see its shares exchange hands at $0,0952, closing with a bid higher at $0,0954.

- fingaz
Tags: OldMutual,


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