Zimbabwe-focused private equity group Brainworks Capital Management surged 361% on Tuesday, representing the second largest positive move judged by points on the local bourse on the day, after trade in shares in Naspers.
Analysts said the move was likely just a delayed reaction, with a large block of shares moving in what is usually an illiquid share.
At 2pm on Tuesday, Brainworks’ share had jumped 361% to R29.98, giving it a market capitalisation of R2.5bn. The share had last been traded on March 9; the company’s share price had also not initially reacted to the release of results for the year to end-December on Friday.
At the time Brainworks — which is based in Mauritius — had reported that revenues rose 22% to $58.6m from the year before. The hospitality division contributed 88% of turnover, which represented growth of 19% in its revenues. Driving growth was the increase in hotel occupancy to 52% from 44%.
However, the group recorded a loss before income tax of $6m, compared to profit before income tax of $4.4m the year before.
The company had been bullish as to the outlook for tourism in Zimbabwe, citing measures being undertaken by the government. On Tuesday, Zimbabwe had also announced it would allow Western observers during its July election. JSE-listed companies with significant interests in Zimbabwe, including Impala Platinum, showed little positive reaction.