Zeros Back Through Stock Market

WHILE no one wants to see the return of the zeros as they are an inconvenience when carrying out transactions, the Zimbabwe Stock Exchange seems to be the re-entry point for “the chased” away zeros.

 

The stock market on Wednesday breached the million point-mark as the benchmark industrial index surged 24,78% to close at 1 053 889,62 points while the mining index followed suit firming 17,58% to settle at 1 046 774,53 points.

The rise of the stock market has been attributed to hyperinflation prevailing in the country.

The stock market reached the one million mark three days after Cottco Limited delisted from the market to paved way for the listing of AICO Africa Limited, the new holding company.

AICO issued 529,7 million shares on the first day of trade which were split in the ratio 2:3 to acquire all listed Cottco shares.

This means existing Cottco shareholders received two new AICO shares for every three currently at hand. All subsidiaries under Cottco were to be transferred to AICO at book.

On the opening day all sellers were at $1 100 while buyers were ready to pay at $1 000. There has been no movement since then.

Cottco had never traded above $400 in real terms since its listing in 1997. AICO group chief executive Happymore Mapara said new shares would unlock value for existing and new shareholders.

“AICO represents the foot with which we want to conquer Africa. The company will be responsible for our regional markets.

AICO is the holding company of Olivine Industries 49%, Cottco 100%, Seed Co 51%, Cottco International 100%, Zambrano 100% and Toray 100%.

The stock market maintained the upward trend during the week with no counter recording a lose cumulatively during the past two weeks.

Meanwhile, the money market continued to experience excess liquidity conditions to the high volumes of fiscal and quasi-fiscal expenditures that continued to flow into the market.

By Paul Nyakazeya