Equities end week on low note as minings fail to find footing

THE Zimbabwe Stock Exchange (ZSE) ended the week in the negative after a relatively quiet trading session that saw only 20 stocks recording trades of which only five realized price movements ahead of ZANU PF’s National Conference scheduled for Bulawayo this week.

The conference is expected to confirm the candidacy of President Robert Mugabe for the party in elections expected next year and would likely shape the developments in the political landscape in the short-term.

The Industrial Index slipped -0,36 percent to 145.16 points weighed down by losses in Dairibord Zimbabwe Holdings Limited, Meikles Africa Limited and OK Zimbabwe Limited but closed the +0,81 percent firmer week-on-week.

Dairibord lost -5,5 percent to 18,9c on thin trades and was offered 19c while OK eased -2,06 percent to 9,5c.

Meikles, which released interims early this week, lost -0,25 percent to 20,11c despite Competition Tariff Commission’s approval of the Pick N Pay – TM Supermarkets (Private) Limited deal.

The deal wills see PnP shore up its stake in TM supermarkets to 49 percent through an investment of $13 million to be used to update and refurbish existing stores and would see selected supermarkets rebranded to PnP.

Regional banking group, ABC Financial Holdings Limited, one of the best performing stocks on the ZSE, with a Year-To-Date gain of 87 percent, added 5 percent to 84c on firm buying while Starafrica Corporation Limited, the only other riser advanced -3,45 percent to 1,50c.

Heavy caps Econet Wireless Zimbabwe Holdings Limited and Delta Corporation Limited were stable at 420c and 72c, respectively, and remain investor favourites.

Econet, which has finally broken psychological barriers after breaching the 400c mark, is now 420c buyers with optimistic sellers indicating offers at 490c.

African Sun Limited was steady at 0,8c on thin volumes after a disappointing but expected set of September finals released last week.

The hotel group has now shifted focus to profitable Zimbabwe operations after disappointing regional operation saw the closure of operations in South Africa and the mutual termination of Holiday Inn Gaborone.

The ZSE's Mining Index slipped -1,68 percent to 113.53 points after Hwange Colliery Company Limited was offered lower at 42c, despite no trades being recorded in the resources sector. Three of the four mining stocks (Hwange, Rio Zimbabwe Limited and Bindura Nickel Corporation Limited) have offers only with no notable bids as trading in this sector remains sluggish.

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