The wheels came off Rio's ambitious $60 million recapitalisation plan at the final huddle when shareholders rejected all proposals tabled by management for a Rights Issue and debt to equity swap.
The Mining Index caught a cold shedding and the largest single weekly loss since dollarisation.
RioZim itself closed the week down 32 percent (16c) at its own all time low of 34c post dollarisation with signs of selling pressure.
Fellow mining house Hwange Colliery Company Limited that is also in the grips of proposed recapitalisations was also caught up in the furor falling 27,3 percent to 32c on selling pressure.
The other mining stocks Falcon Gold (Zimbabwe) Limited and Bindura Nickel Corporation Limited were stable at 6c and 5c, respectively.
The main stream Industrial Index on the hand failed to find firm footing as four sessions of marginal losses against on one marginal gains losses took the index to a -1,89 percent cumulative loss week on week.
A total of 43 stocks recorded price movements with the fallers dominating at 28 counters against 15 risers.
ART Holdings Limited led the market losses shedding 40 percent to 0,30c as the market began to discount them for releasing yet another disappointing but expected final set of results to September 2011, that reflected a loss from continuing operations of $2,9 million.
For a company that managed to entice shareholders into a recapitalisation plan and yet remains heavily indebted the market is indeed loosing patients in the group, however, the higher operating costs and relatively uncompetitive efficiencies and capacities generally render local manufacturing uncompetitive against the proliferating cheaper imports.
The buying pressure that had sustained the price of investment holding company Tobacco Associates Holdings Limited weakened in the week under review and with it its price took a knock shedding 35.795 to 12,2c while the illiquid agro-industrial concern Chemco Holdings Limited fell -33,3 percent to 10c.
Other losses were seen in property groups Mashonaland Holdings Limited and Dawn Properties Limited down 13,79 percent and 13,75 percent at 2,50c and 0,69c, respectively, insurance group ZimRe Holdings Limited dropped -16,67 percent to 1c as financial services groups CBZ Financial Holdings Limited and Barclays Bank of Zimbabwe Limited came off -9,1 percent and -6,25 percent to trade at 10c and 45c.
Small cap stocks topped the gains with Apex Holdings Limited leading after a surprise 150 percent surge took them to 0,25c, while Medtech Holdings Limited followed after rising +53,85 percent to 0,2c.
Rainbow Tourism Group and Radar Holdings Limited recorded identical 50 percent gains to 3c and 30c, respectively with the latter (Radar), one of the most illiquid stocks on the market recording its first trade in 47 trading sessions.
Other notable gains were seen in Meikles Africa Limited up 9 percent at 22c and construction company Murray & Roberts (Zimbabwe) Limited that notched an 8 percent gain to 10,8c.
The weekly value of trades was a much improved $10,8 million thanks to heavy trading in telecommunications giant Econet Wireless Zimbabwe Holdings Limited, whose weekly trades represented 68 percent of total turnover highlighted by a special bargain of 1 524 300 shares that sailed through at 385c being a 3,75 percent discount to the group’s closing price.
Delta Corporation Limited and OK Zimbabwe Limited were the other notable highly traded stocks after accounting for an estimated 11 percent and 9 percent, respectively.Post published in: Business