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THE Zimbabwe Stock Exchange recorded its biggest year to date loss since dollarisation at the end of the year yesterday. The benchmark Industrial Index lost 19.46 percent as weak foreign investor sentiment and the tight liquidity constraints in the local pool weighed down performance. The only other years which recorded losses were 2010 at 0.47 percent and 2011 at 3.58 percent.

The performance of the exchange this year makes it one of the worst performing bourses on the continent. At the close of trades on yesterday, the Industrials was 0.34 percent lower to 162.79. Analysts expect the index to go back to the 150 level in the first quarter as no changes to the economy are expected. More companies are expected to fail to open at the beginning of the year.

Commentary from Lynton Edwards Stockbrokers says that despite closing the first few months of the year negative, the ZSE showed some signs of recovery having closed positive in May through to August. Although the gains did not reverse the losses recorded earlier in the year, the positive runs had given investors hope that the market was heading for a positive close by the end of the year. By the end of August the year-to-date loss had been reduced to 2.82 percent from as high as a 14.45 percent loss in April. August was the market’s second best month with the main Industrials Index having gained 4.4 percent.

June was however the best performing month with the main Industrials Index having gained 6.67 percent. The wheels were, however, to come off in September leading into October. By the end of October the market had lost 8.9 percent during the month, pushing the year-to-date loss to 11.90 percent. The loss in October was the year’s biggest in a single month.  From then it was a downward trend with the market losing another 3.61 percent in November to push the year-to-date loss to 15.17 percent. Another 5.05 percent was lost in December leading to the record loss of 19.46 percent

Bindura led the year’s performers gaining 220 percent to 6.4 cents as the nickel miner returned to profitability following years of care and maintenance. International nickel prices have been firming following the ban of the export of the mineral in Indonesia. Bindura is currently trading under caution as the group is currently raising $20 million through a bond issue. As a result of Bindura’s buoyancy, the Minings Index gained 56.61 percent to 71.71. The Index started the year at the 45.79 level.

During the day’s trades total transaction value was at $746,555 mainly invested in Delta. The beverages maker however appeared on the losers chart after a 3c drop to 102c taking its year to date loss to 27.2c. OK Zimbabwe shed 0.5c to 11.5c as the retailer continues to be affected by the low aggregate demand and increased competition mainly in the form of low-end Choppies. The retail chain closed the year with a 42.5 percent drop. Fidelity Life was the worst performer losing 0.65c to 87c while Afids pared 0.5c to 47c.

Pennystock Pelhams closed the year as the worst performer with a 98.8 percent loss.

Turnall led the day’s risers gaining 0.35c to 1.35c but has a year to date loss of 73c. The group commissioned a Ravenna tile plant this year and lost a chief executive in the process while it was also sold off as a dividend in-specie by FBC Holdings. Cement maker Lafarge was 9c lower to 55c. The group is expected to suffer from increased competition once the biggest player in the sector PPC opens its Harare plant. NatFoods, which is due to announce a new CE was up 10c to 340c. The counter has a year gain of 70 percent.

Overall only 15 counters closed with a positive return.

Total turnover for the year amounted to $452.8 million, which is lower than turnover of $485.7 million recorded in 2013. — Wires .