Industrials break even on extended losses as minings sink further…

The Zimbabwe Stock Exchange's Industrial Index found no respite as it traded in the negative for the fifth consecutive session this week narrowing the Year-To-Date gains to +0,64 percent down, that once peaked at 12.31 recorded on June17, 2011.

Trading activity remains uninteresting with turnover below the $1 million mark at $842 274 from 4 426 177 units while foreign trades were also depressed at $330 085 and $364 793 for inflows and outflows, respectively.

We, however, believe that current market valuations do not justify company fundamentals and thus the ZSE now offers opportunities for patient alpha hunters.

Market drivers Delta Corporation, Econet Wireless Zimbabwe Holdings Limited and Innscor Corporation Limited have continued to exhibit price weakness despite impressive financial results sweetened with dividends.

Risk factors to watch, however, are effect of the indigenisation process, possible elections next year and inflationary pressures.

By close of trade the Industrial Index slipped -0,44 percent to 152.24 points as gainers and losers were square at seven counters apiece with 28 counters unchanged. Tobacco Associates Holdings Limited lost -11,76 percent to 15c, Innscor slipped a further -1,64 percent to 60c, Delta lost -0,69 percent to 71,5c while Econet eased -0,80 percent to 386,88c.

SeedCo Limited was steady at 120c on foreign buying while parent group closed the week offers at 24c with no buyers.

On the upside was Starafrica Corporation Limited which added +13,33 percent to 1.7c, Padenga Holdings Limited (+7,84 percent), Afdis Holdings Limited (+7,69 percent) while Murray & Roberts (Zimbabwe) Limited (M&R) added +3,57 percent to 14,3c on a significant volume of 738 000 worth $107 010.

The resources sector, hard hit by indigenisation fears and funding issues has now widened YTD losses to 29,18 percent weighed down by Rio Zimbabwe Limited (-68,42 percent), Bindura Nickel Corporation Limited (-65,23 percent) and Falcon Gold Limited (Falgold) (-24,21 percent) while Hwange Colliery Company Limited has narrowed its YTD gain to +1,89 percent.

In Friday's trades the ZSE's Mining Index lost -1,17 percent on losses in Hwange which eased -1,82 percent to 54c.

Falgold put on 2,86percent to 7,2c while RioZim was unchanged at 60c despite selling pressure.

Post published in: Business

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