Econet in impressive gains

The Zimbabwe Stock Exchange (ZSE)'s Industrial Index kept the rising momentum into the new month putting on +0,49 percent to 145.69 points on gains in Econet Wireless Zimbabwe Holdings Limited, Meikles Africa Limited and ABC Financial Holdings Limited.

The value of trades for the day receded to $1,2 million while turnover disaggregation by market participant indicated the significant decline in foreign participation from yesterday’s levels.

Foreign buying at $620 271 represented 49 percent contribution to market liquidity from foreign inflows which compares adversely to yesterday’s contribution at 85 percent as sales were even more subdued at ($398 985) 36 percent against 78 percent previously.

Active stocks for the day stood at 31 from which an estimated total of 15,5 million (up 83 percent from yesterday) while price movements were recorded in only 15 stocks split seven risers against eight fallers.

Penny stocks ART Corporation Limited ZDR and Pelhams Holdings Limited top performed with the former surging +66,7 percent to 0,5c, while the latter put on +13,6 percent to 0,75c.

Telecommunications giant Econet carried the most compelling performance for the day rebounding from yesterday’s 20c loss with an impressive 40c (10,53 percent rise) that saw the counter break the psychological barrier of 400c to trade at 420c.

Regional financial services group ABCH were +1,27 percent gainers to 80c as conglomerate Meikles Africa Limited braved the post results storm with a marginal +0,25 percent rise to 20,16c.

Notable shakers for the day included Dairibord Zimbabwe Holdings Limited that closed the day -9,1 percent softer at 20c as the recent charge fizzled out.

Retail stocks Truworths Limited and OK Zimbabwe Limited dropped -5,56 percent and -3,10 percent to trade at 8,5c and 9,7c.

The agro-industrial concern AICO Limited dropped -2,56 percent to 19c on news the group’s Food and Manufacturing Consumer Group subsidiary Olivine Industries (Private) Limited has lurched into a going concern crisis after extending losses in the interim period to September 2011.

AICO’s management, however, has since reassured investors at an analyst briefing a few weeks ago that while Olivine is likely to close in a loss position the shareholders intend to inject an additional $7,5 million that should boost working capital and see resuscitation of capacities that should see positive results in the following year ending March 2013.

The ZSE's Mining Index, on the other hand, closed flat at 115.47 points as Falcon Gold (Zimbabwe) Limited (Falgold) traded mainly unchanged at 6c while there were no trades in all the other constituent counters.

Post published in: Business

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