ZSE in second consecutive loss

The Zimbabwe Stock Exchange (ZSE's) stock sank into negative for the second trading session as investors have to wait much longer for the much anticipated 2012 National Budget after the Ministry of Finance postponed the presentation for the second time to Thursday.

The National Event was postponed because President Robert Mugabe had been away in China on a State visit and only returned late on Monday.

The National Budget comes amid limited fiscal space relative to high demand for the resources available.

Despite conservative growth estimate from the fiscal authorities, listed counters on the local bourse have registered impressive growth in revenue this year implying better outlook from a bottom up approach.

The ZSE's Industrial Index slipped -0,59 percent to 142.68 points widening its Year-To-Date loss to 5,68 percent.

Weighing down the day’s performance was Innscor Corporation Limited which succumbed to selling pressure easing -3,64 percent to 53c, Hippo Valley Estates Limited lost -0,90 percent to 110c while Old Mutual Limited dropped to a 52-week low price of 118c.

Retailing giant, OK Zimbabwe Limited eased -2,11 percent to 9,3c ahead of interims today.

Leading the day’s fallers was Starafrica Corporation Limited down -25 percent to 1,2c, African Sun Limited slipped -12,50 percent to 0,70c as Colcom Holdings Limited knocked -4 percent to 36c.

Of the 42 active stocks only eight recorded gains against 13 losers.

Gains were concentrated among the small cap counters as Powerspeed Limited led the charge with a +25 percent gain at 1,5c, Ariston Holdings Limited put on +22,22 percent to 1.,1c despite a loss warning while Hunyani Holdings Limited added +20 percent to 6c.

Trading was fairly modest in heavy cap counters Econet, Wireless Zimbabwe Holdings Limited, Delta Corporation Limited, Innscor Corporation Limited, Hippo Valley Estates Limited and SeedCo Limited lifting turnover to $1,2 million, up from $904 000 despite a 17 percent drop in volumes to 7,6 million shares.

Foreign buying was marginal up at $494 397 while a jump in foreign sales to $608 134 saw foreign participation closing as net sales.

The ZSE's Mining Index shed -0,53 percent to 118.02 points on losses in Falcon Gold Limited (Falgold) which slipped -7,14 percent to 6,5c as the resources sector continue to wallow in the negative with very little prospects of positive returns this year.

Bindura Nickel Corporation Limited closed unchanged at 4,6c, Hwange Colliery Company Limited added a marginal +0,02 percent to 45,01c while Rio Zimbabwe Limited was bid at 45c and offered at 50c.

Post published in: Business

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