Special bargains the buzz word

The Zimbabwe Stock Exchange's Industrial Index traded in the negative weighed down by losses in CBZ Financial Holdings Limited as selective trading persists with Delta Corporation Limited and Dairibord Holdings Zimbabwe Limited recording the only notable trades of the day.

Banking group, CBZ lost -14,74 percent to a 52-week low price of 11,51c as uncertainty shrouds the possible course of action that the new administration in Libya are going to take on investments held by the Libyan government following the death of Libyan leader Col Gaddafi last Thursday.

The Libyan Foreign Bank is the second largest shareholder in the local banking group with a 14,12 percent stake in CBZ.

The Industrial Index slipped -0,14 percent to 143.60 points while turnover in normal trades improved to $926 462 from $844 000 yesterday boosted by Delta and DZL which accounted for $578 285 and $131 885 of total turnover.

Total value trades was boosted to $3,5 million after local investor snapped a 35,8 percent stake in furniture group Pelhams Limited for $2,5 million through a special bargain trade of 358 207 502 at 0,71c (58 percent premium on the last trading price of 0,45c).

Shareholder reshuffle is now dominant phenomena on our market with significant stakes exchanging hands through special bargain trades as shareholders also restructure their own balance sheets.

This month alone there were four such trades in National Foods Holdings Limited (11,7 percent), TN Financial Holdings Limited (1,22 percent), ABC Financial Holdings Limited (3,42 percent) and the latest being Pelhams (35,8 percent).

Tourism group, African Sun Limited was the worst performing counter of the day easing 30 percent to 0,7c albeit on thin volumes widening its Year-To-Date loss to 68 percent as investor patience in the loss making group since dollarisation seems to be running out.

African Sun is expecting to report a loss for the year ended September 30 due to restructuring that is ongoing at the group following the closure of two South African Hotels and retrenchments taking place at the Head Office which are expected to reduce head count by 58 percent..

The ZSE's Mining Index recovered +1,30 percent to 136.67 points buoyed by speculative buying in Bindura Nickel Corporation Limited which added +21,67 percent to 7,3c we, however, sincerely believe that the current price for Bindura is not sustainable as it remains largely under care and maintenance for the foreseeable future.

Rio Zimbabwe Limited breached the 50c mark to ease a marginal -0,01 percent to 49,95c on selling pressure.

Post published in: Business

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