Foreign buying dominates ZSE as Hippo and Econet lift Industrials

The Zimbabwe Stock Exchange (ZSE's) Industrial Index closed the week in the positive edging +0,13 percent to 143.66 points buoyed by gains in Hippo Valley Estates Limited and Econet Wireless Holdings Zimbabwe Limited.

Agro-industrial group, Hippo continued to adjust favorably to interims advancing a further +5 percent to 105c while Econet has finally broken the psychological barrier of 370c for the first time in 26 trading sessions.

The group added +1,35 percent to 375c and closed buyers at the same level.

The worst Year-To-Date performers ART Corporation Limited and African Sun Limited were the day’s best performers after stationery group, ART made a surprise +25 percent advance to 0,50c despite a loss warning advising investors that the second half was tougher than expected and hence the group is expected to report losses for the year ended September.

African Sun, which is also trading under a loss warning, added +14,29 percent to 0,80c and is expected to release September finals soon.

ART has YTD loss of -64,29 percent having opened the year at 1,4c while African Sun is set to be among the worst performers for the second year running with current YTD loss of -63,64 percent having lost -82 percent in 2010.

There was an improvement in foreign participation on the local bourse as foreign buying accounted for 61 percent of total trades.

Value traded increased 9,1 percent to $1 069 922 with foreign buying in Innscor Corporation Limited, Econet and SeedCo Limited amounting to $653 009.

Volumes were, however, 20 percent lower at 5,5 million shares.

ZimRe Properties Industries led the losers easing -17,24 percent to 1,2c, AICO Limited lost a further -7,85 percent in the wake of their September interims while Plate Glass Industries Limited shed -5 percent to 1.9c.

Delta slipped -0,29 percent to 72,79c, Pretoria Portland Cement was -3,38 percent to 52-week low of 200c while Edgars Limited shed -2,23 percent to 8,75c.

Rio Zimbabwe Limited touched a 52-week low price and rights issue price of 45c after a 10 percent loss in trading to see the ZSE's Mining Index ease -1,44 percent to 119.64 points, widening the YTD loss to -40.30 points.

Prospects of a positive return from the mining stocks this year are very slim as all mining stocks are deep in the red while recapitalisation woes also cast doubt on dividends.

Rio is the worst performing mining stock with a YTD loss of -76,32 percent, Bindura Nickel Corporation Limited (-61,54 percent), Falcon Gold Limited (-26,32 percent) while Hwange Colliery Company Limited is -15,09 percent down.

Post published in: Business

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