ZSE Stocks rise amid deal activity

An Afre special bargain was the major highlight on the ZSE yesterday as the equities market recorded its eleventh consecutive gain albeit in thin trades. Only 24 counters traded today.

Brokers ISB and Renaissance conducted a special bargain of 42,798,497 Afre shares worth approximately $7.883 million at a staggering price of 18.42 cents. The price of the special bargain is at premium of at least 514% to the trading price of 3 cents. The shares are rumoured to be those Econet is supposed to sell to NSSA as part of the RMB takeover.

The deal boosted the value of trades to more than $8.1 million after only $254,000 had changed hands in normal trades.

At the close, the Minings Index was the biggest mover having put on 5.81% to close at 88.02 points. The Index was buoyed by a 42.86% gain in Bindura as well as a 25% gain in RioZim.

The Industrials Index also managed to remain on a positive trend after adding 0.20% to close at 143.46 points. Counters that boosted the Industrials Index were Cafca up 20% to close at 60 cents ahead of its AGM next week. CFI was 16.67% ahead at 7 cents as the company’s management work on a capital raise plan.

Also in the black was Afre up 11.11% to close at 3 cents. NSSA is set to become the Afre’s major shareholder after acquiring shares previously held by RFHL, Renaissance Investment Banking Corporation Limited, Renaissance Nominees. Econet is also expected to sell shares it holds in Afre to NSSA.

Delta was steady at 70 cents. The group is planning to roll out a $50 million Indigenous Supply Chain Fund over a three-year period to support local entrepreneurs and farmers in agricultural and agri-business in compliance with the ongoing indigenisation programme. The company is targeting an indigenisation threshold of 56% by March 2015.

Bankers CBZ and Barclays traded steady at 4.4cents and 9.05 cents respectively. NMB was however 1.89% ahead at 1.08 cents. The Bankers Association of Zimbabwe (BAZ) has reportedly recommended a minimum loan to deposit ratio of 70% and banks operating below the rate should deposit its excess funds with the central bank as part of measures to improve liquidity management. The recommendation if adopted, will pile pressure on foreign-owned banks that have accused of deliberately starving the market of liquidity by having low loan to deposit ratios

Only two stocks Border and Mash traded in red after losing 6.67% and 0.37% to close at 14 cents and 2.7 cents respectively. – FinX

Post published in: Business

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