Paul Nyakazeya, Group Digital Editor 
FOREIGN investors were net sellers of $68,3 million worth of shares on the Zimbabwe Stock Exchange (ZSE) in January, latest figures show.
According to the bourse, foreign purchases accounted for $19,8 million worth of shares during the month under review while sales amounted to $88,2 million.
Beverages giant, Delta Corporation (Delta), dominated the net sellers with shares worth $47 million during the month. It was followed by Cassava Smartech Zimbabwe (Cassava), which accounted for $17,9 million.
Other firms to dominate net sellers were Padenga Holdings $5,6 million, Econet Wireless, $4 million, Mashonaland Holdings $1,9 million and PPC $1,7 million.
Delta last month reported revenue growth for the third quarter and nine months to December 31, 2019 although sales volumes tumbled across most segments.
Revenue for the quarter rose 27 percent in inflation adjusted terms (646 percent historical) reflecting the changes in product mix and price increases.
For the nine months to December 2019, inflation adjusted revenue increased by 2 percent and 346 percent in historical terms.
However, a combination of shortages of foreign currency to import raw materials, electricity for its breweries and fuel for distribution resulted in a volumes slump.
The third quarter, which falls within the festive season usually records high sales as demand skyrockets in line with the season’s festivities.
But the group’s third quarter report shows lager beer volumes declined 43 percent and 46 percent for the nine months compared to the same period in the prior year. Delta said it has had to cut back on lager beer production during the period under review.
“Consumer spending is constrained by low disposable incomes as salary and wage adjustments continue to lag the increases in prices of goods and services,” said Delta in its trading update.
Cassava last month said it recorded a 19 percent increase in mobile transactions for the nine months ended November 30, 2019 due to prevailing cash shortages.
This comes as the country’s mobile money transactions grew 91 percent to $11 888 760 224, in the third quarter last year, according to the Postal and Telecommunications Regulatory Authority of Zimbabwe.
The current cash crunch prevailing in the country has made mobile money an important channel for transacting in the country.
Cassava, which operates Zimbabwe’s largest Mobile Money platform, EcoCash, with around 90 percent market share, said it will continue to leverage on a robust business model to create value despite the deteriorating macro-economic environment.
“The group has continued to innovate and invest further in its technology platforms in order to provide our customers with relevant products and services while improving access and convenience,” the company said, adding that its number of active customers increased by 17 percent in the same period.
Padenga has been an attractive counter since last August, when shareholders approved the company’s acquisition of a majority stake in gold miner, Dallaglio Investments.
The deal reduces Padenga’s concentration risk through diversification into alternative, export-oriented business with capacity to generate hard currency which is not readily available on the domestic market.
newsdesk@fingaz.co.zw
