Blue chip counters excite foreign buyers

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FOREIGN investors were net buyers accounting for $4,3 million worth of shares on the Zimbabwe Stock Exchange (ZSE) in November, with particular interest in Old Mutual, Delta Corporation and Axia Corporation.
According to figures from the local bourse, foreign purchases accounted for $39 million worth of shares while sales amounted to $34,8 million during the period under review.
Of the $39 million shares bought, Old Mutual accounted for $21,2 million, Delta $8,8 million and Axia $882 000.
The other counters to record positive net buying were British American Tobacco at $62 020, First Mutual Holdings at $21 240 and African Sun Limited at $11 600.
Old Mutual has said it has plans to venture into the tourism industry after acquiring 6,6 hectares of land in Victoria Falls.
The company is reportedly still in negotiations with the Victoria Falls municipality to get approval to construct a tourism-related facility in the resort town.
Stock brokers say interest in Delta could be a result of the company’s consistency in continuously engaging government and the financial sector to find ways of addressing foreign currency shortages that affect production.
Delta recorded a 77 percent increase in after tax profit to $57,2 million in the half year to September 30, 2018, driven by increased lager sales.
The beverages maker saw its revenue increase by 37 percent to $341,4 million, compared to $250,1 million recorded during the same period the previous year after lager beer volumes grew by 54 percent, sorghum beer two percent and sparkling beverages three percent.
As a result, EBITDA increased 54 percent to $81,8 million, while earnings per share rose 75 percent to $4,63 cents.
Axia Corporation Limited last week announced that it saw greater opportunities going forward helped by struggling competitors as the going gets tough economically.
John Koumides, the company’s chief executive, told shareholders at the company’s annual general meeting that the group remains confident despite the tough operating environment in Zimbabwe.
In a trading update for the four months ending October 30, 2018, Koumides, however, expressed concern on government’s lack of support in terms of foreign currency allocation to the retail sector.
The central bank is providing various foreign currency facilities to strategic sectors of the economy such as manufacturing.
During the period, volumes rose 31 percent at TV Sales & Home, while Distribution Group Africa (DGA) volumes improved by 21 percent.
Volumes for the regional operations were up between two percent and three percent. newsdesk@fingaz.co.zw