ZSE’s likely movers and shakers

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LOCAL equities advisory firm says investors should put their money in Axia, African Sun, Art Corporation, Econet and Cafca to get a healthy return-on-investment in the first quarter of this year.
Axia has three main business interests namely 50,01 percent in Distribution Group Africa their highest revenue earner, 66,67 percent in TV Sales and Home and 26 percent of Transerv, a vehicle sundries, spares and parts company.
According to Old Mutual Securities (Omsec), Axia has been consistently growing despite several constraints being experienced in the economy.
“We expect the company to grow more if the economic environment improves for the better. The company continues to exhibited strong earnings growth potential despite the current economic hardships. We do however maintain a cautiously optimistic view for the outlook,” the research firm said.
“Axia is neutral on both the relative strength index and moving average convergence and divergence scale. We advise taking advantage of the current stability in the share price and invest for long term gains,” they said.
The other recommended counter, African Sun owns major hotels in tourist hotspots in Zimbabwe, which is Victoria Falls, the Nyanga Mountaineous region, Hwange National Park and City Hotels in Harare, Bulawayo and Mutare.
“The company’s profitability has improved on the back of debt and organisational restructuring with an international hotel management company taking charge of its major hotels,” said Omsec.
Tourist arrival growth and the ability of the company to meet its expenditure requirements in foreign currency has made the hotelier quite competitive.
“We recommend taking advantage of the current weakness in the share price and accumulate more for progressive long term gains,” the advisory firm added.
Commenting Art Corporation, Omsec said government’s directive to protect locally manufactured goods against imports has worked well as this has underpinned the company’s battery sales division.
Econet has remained a perennial top pick, recently the company restructured by hiving off its financial technology company from its cellular network operations business. Omsec said developments in the economy will see increased demand for the services that Econet provides with a more concentrated management effort on the reconstructed company.