Innscor, Old Mutual lead net sellers on ZSE

FOREIGN investors were net sellers of $53,9 million worth of shares on the Zimbabwe Stock Exchange (ZSE) in February, latest figures show.
According to the local bourse, foreign purchases accounted for $50 million worth of shares during the period under review while sales amounted to $104 million.
Conglomerate Innscor Africa (Innscor), integrated financial services group Old Mutual Zimbabwe and beverages giant, Delta Corporation (Delta) accounted for the bulk of the selling.
Innscor leads the net sellers with shares worth $21,9 million followed by Old Mutual with $21,7 million while Delta accounted for $16,9 million.
Other firms to dominate new sellers were Cassava Smartech Zimbabwe (Cassava) $3,5 million, Masimba Holdings $1,6 million, NMB $854 024 and OK Zimbabwe $718 979.
Innscor has said it will continue to adjust its trading model across group operations with focus on building capacity in order to achieve real balance sheet growth.
Julian Schonken, the group’s chief executive, said the current market conditions allowed for exports to commence.

“We continue to focus on ensuring our trading models are dealt with current market conditions and achieve necessary real balance sheet growth,” he said at the company’s annual general meeting recently.
He added that the group has been predominantly Zimbabwe-centric but current economic conditions which are hyperinflationary made it necessary to look beyond the domestic market.
“In most of our operations, exports are now taking place. Obviously, that is going to take time to build up export markets and that is the process that we are going through at the moment,” he said.
Old Mutual, whose shares are listed on the Johannesburg Stock Exchange with a secondary listing on the Nairobi Securities Exchange and the Malawi Stock Exchange, last year said it will apply hyperinflationary accounting for its Zimbabwe business unit in light of the runaway inflation negatively affecting the economy.
The runaway inflation is being driven by the rapid devaluation of the local currency.
Old Mutual, which returned to the ZSE in June 2018 after the parent company restricted its 19-year stint on the London Stock Exchange, said its performance across its business remained resilient and the group remains positive despite the economic challenges.
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 slump in v