Foreign trades boost turnover

The Zimbabwe Stock Exchange's mainstream Industrial Index closed the week firmly in the red clocking two weeks of successive losses as President Robert Mugabe launched the first Community Share Trust at Zimplats (Private) Limited and urged companies to comply with Black Economic Empowerment laws.

Foreign investors were net sellers in Delta Corporation Limited, Econet Wireless Zimbabwe Holdings Limited, Innscor Corporation Limited, Truworths Limited and Meikles Africa Limited with outflows amounting to $957 926 against purchases of $597 838 while selective back to back foreign trades lifted turnover to $1,6 million from $768 183 as volume traded improved to 15,2 million shares from 5,5 million recorded on Friday.

Delta was stable at 68c and was the favourite counter of the day accounting for $597 848 of turnover boosted by back to back foreign transactions while Econet lost -1,32 percent to 375c on foreign selling.

Property group Pearl Limited added +3,45 percent on local buying on a notable volume of 7,2 million shares that exchanged hands.

By close of trade the Industrial Index slipped -0,29 percent to 146.91 points on new inflation figures which indicate mounting inflationary pressures with the September year-on-year Consumer Price Index rising to 4,3 percent from 3,5 percent edging close to the target 2011 year on year of 4,5 percent.

Construction company Murray & Roberts Zimbabwe (Private) Limited (M&R) was the worst performer of the day slipping -10,34 percent to 13c after reports of shortages of cement caused by a breakdown of one of Larfage Limited’s two plants as the cement manufacturer Lafarge touched a 52-week low price of 65c after losing -7,14 percent in trades.

Fellow cement producer Pretoria Portland Cement, which is expected to report earnings that will be 25 percent to 30 percent lower than last year, eased a further -6 percent to a 52-week low and pre-fungibility price of 235c.

The ZSE's Mining Index snapped a two week downward trend to trade +0,52 percent firmer at 138.35 points on gains in Bindura Nickel Corporation Limited and Falcon Gold Zimbabwe Limited.

Nickel miner Bindura added +8,70 percent at 5c but remains under extended care and maintenance programme since November 2008.

Falgold put on +1,32 percent to 7,7c and has seen renewed investors interest after reporting a turnaround in fortunes following a $2 million recapitalisation by shareholder New Dawn Limited last year.

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