The main stream Industrial Index closed the week 3,5 percent softer at 146.91 points and with this week’s losses the index year to date returns fell into the negative closing the week at -2,88 percent.
Liquidity challenges continued to haunt the market on limited foreign inflows that have been affected by lack of clarity on Zimbabwe’s indigenisation regulations and the global markets crises precipitated by the Europe debt crisis affecting the PIGS and the souring relations between the world leading trade superpowers China and the United States of America on the latter’s passing of a trade bill affecting the former.
Market turnover fell -44 percent to $5,3 million with Delta Corporation Limited, Econet Wireless Zimbabwe Holdings Limited and SeedCo Limited emerging the most liquid stocks for the week after accounting for a combined 44 percent of the total value traded in the week.
Total foreign inflow estimates for the week amounted to $1,7 million (33 percent of value traded) against outflows of $2,1 million (41 percent of total turnover).
Among the counters to trade in the negative was cement manufacturer, Pretoria Portland Cement that weighed heavily on the Industrials shedding -18,97 percent (-55c) to 235c and remains net sellers while its Year-To-Date has widened to -34,72 percent.
PPC has been on a free fall losing a cumulative -29,85 percent from the beginning of September after reports that earnings are expected to be 25-30 percent lower than previous year owing to rising inputs costs coupled with a challenging operating environment due to sluggish construction sector in South Africa post World Cup.
Dairibord whose operations have been limping from power outages closed the week -5,24 percent softer at 19,9c on news that milk supplies are expected to remain depressed in 2012 due to challenges faced by dairy farmers in the country.
The negative perception stalking telecommunications giant Econet following the incessant shareholder battles at AFRE Limited and Renaissance Merchant Bank that saw the muted Extraordinary General Meeting to approve a rights issue failing to be held last month continued to weigh on the stock as the group dropped -3,07 percent for the week to close at 375c and also remained net sellers for the week.
Fellow market heavyweight Delta succumbed top selling pressure easing -4,9 percent for the week to trade close the week at 68c.
Leading market losses for the week, however, was furniture and housing appliance retail group Pelhams Limited that shed -37,5 percent to 0,5c while other losses were seen in Nicoz Diamond Limited -23,59 percent, AICO Limited -14,29 percent and ABC Financial Holdings Limited -13,58 percent and Murray & Roberts Zimbabwe Limited (M&R) -10,34 percent.
Post published in: Business