ZSE shares rise as govt denies amending the Indigenisation Act

Published: 05 June 2013

ZSE shares stayed in the positive territory on Thursday after Indigenisation minister Saviour Kasukuwere dismissed reports that the Indigenisation Act was being amended to provide for payment of shares using mineral deposits; saying government will engage mining firms that submitted compliance plans on the basis of agreed term sheets.

But lack of clarity and inconsistencies which have always been associated with the indigenisation drive persisted with the Daily News insisting that government is in the process of pushing through amendments to the empowerment laws due to flaws in the implementation process of several empowerment deals that would have resulted in the country losing out to foreign companies.

The Industrials Index gained 022 points or 0.12% to 189.06 largely on gains in Meikles, OK Zimbabwe and Natfoods.

OK Zimbabwe, which launched its 25th OK Grand Challenge promotion last week, added a modest 0.01c to 19.02c while Natfoods was 10c up at 230c, its all-time high taking its gains since January to 74.2%.

Other blue chip counters, Delta, Econet and Innscor remained stable at 126c, 61c and 86c each.

The Minings Index gained 1.22 points or 1.75% to 71.09 after Hwange bid improved to 14c from 13c. Bindura and Falgold traded unchanged at 2.8c and 14c each.

Total market turnover improved to $1.779 million on a volume of 4.942 million shares up from yesterday's $928 792 on a volume of 7.878 million shares.

Barclays which remains a target of indigenisation in the banking sector lost 0.10c to 3.4c. CBZ eased 0.50c to 13c while ZBFH led the risers after adding 1.40c to 10c. ABC also closed in the red dropping 2c or 3.85% to 50c.

Meikles and Powerspeed were the other top risers on the day adding 6.43% and 6.67% each to 24c and 1.6c respectively.

Afre advanced 0.40c or 3.60% to 11.5c while cement manufacturer PPC recorded a 0.94% increase to 215c. Masimba traded 3.33% firmer at 3.1

Hunyani led the top fallers easing 1c or 28.57% to 2.5c. Investment company TA Holdings also traded on the downside closing 2% weaker at 9.8c. African Sun dropped 0.03c or 1.96% to 1.5c.

Aico Africa traded unchanged at 7.5c after renewing its cautionary statement saying the directors of the company are contemplating a series of transactions to enhance shareholder value.

Star Africa remained stable at 1.75c after publishing a further cautionary saying the firm is still engaged in discussions that may result in transactions that could have a material! impact on the value of the company's shares.

Meanwhile, ZSE has announced that Barbican Holdings Limited, TZI Limited and Red Star Holdings Limited have been terminated and removed from the official list with effect from 23 April 2013.

The Datvest All Share Index added a modest 0.04 points or 0.03% to 128.14 while the FBC ZSE-10 Index was 0.06% better at 133.65.

Gains in Afre helped the Insurance Index to rise 2.49 points or 2.09% to 121.41.
- zfn