Investors continue to shy away

zimbabwe_stock_exchangeHARARE - The Zimbabwe Stock Exchange opened the week in gains in the penultimate trading session of the month on resurgent demand across the board.

The Industrial Index for the period gained 0.19 points to close at 161.76 points driven by milk producer and processer Dairibord, which rose 0,93 percent.

“The market continued to trade thin as sellers continue to shy away – with total value of trades falling 27,7 percent to $1,1 million, while the volume of shares traded was hardest hit, down 35,5 percent at 14,661,215 shares,” said Phineas Mandaza, an equities analyst at EFE Securities (Private) Limited.

Mandaza said the Industrial Index had reported a 0,12 percentage gain for the period.

Best performing counters included chemicals manufacturer Chemco Holdings Limited (Checo) whose share price shot up by 20 percent from $0,10 to $0,12, Phoenix Limited up from $0,21 to $0,25, Ariston Holdings Limited from $0,02 to $0,03, ZHL from $0,12 to $0,13 and hotelier African Sun Limited which increased from $0,21 to $0,22.

African Sun closed the chapter of high-flyers moving by 6 percent. Counters that won the wooden spoon for the period included Powerspeed Limited, whose share price declined by 35 percent from $0,20 to $0,13, TSL from $0,10 to $0,09, property concern Dawn Properties Limited down from $0,10 to $0,09 and diversified TA Holdings Limited from $0,14 to $0,13.

The Mining Index gained 3.23 points to close at 194.83 points – a 1,69 percentage change. Hwange Colliery Company rose 1,89 cents to trade at $0,67, while Falcon Gold and Rio Zimbabwe traded at previous levels.

The mining industry continues to be seriously affected by the new Indigenisation and Economic Empowerment Act passed by government.

RioZim and Mwana Africa have told the government that the new regulations are scaring away potential investment because they are tantamount to “ignoring property rights”.

Post published in: Manufacturing

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