Industrials rises again but volumes remain depressed

Published: 05 July 2013

ZSE's Industrials managed gains for the second consecutive day amid notable buying in selected counters but overall volumes remained low.

The Industrials Index gained 2.27 or 1.07% to 213.47 points on gains in blue chips Econet, Innscor and BAT.

The total market turnover was approximately $1,061 million on a volume of 5.624 million shares against yesterday's $1.249million on a volume of 8.987 million shares.

Banking counters were in favour on the day with Barclays adding 0.49c or 0.49% to 5c while FBC which recently sold 7.31% stake to Mauritian based private equity firm ShoreCap II Limited, through their US based fund managers Equator Capital 1% to 12c Partners, added 2c or 20% to 20.1c. NMB was 0.50c better at 9c.

BAT advanced $1,25 to set another record level of $11,75c and is still strong with buyers still looking at the same price. This takes its gains in the year to 226.4%.

Heavyweight Econet traded in the green adding 0.33c to 64.33c after reports that the group's Steward Bank which has just rebranded from TN Bank, has been recapitalised to the tune of $75 million against the regulatory minimum capital threshold of $50 million.

Innscor added 1.19c or 1.29% to 93.20c while its associate Colcom dosed as one of the top 5 risers advancing 3.99c or 12.87% to 35c.

OK Zimbabwe was amongst the top 5 losers, shedding a marginal 0.02c or 0.09% to 23.20c after reports that the retail giant has partnered South African company Kawena (Pty) Limited to tap into the $500 million per year being remitted by Zimbabweans in South Africa for family support and other personal projects.

Delta remained stable at 140c after reports that the beverage manufacturer will provide communal and commercial farmers with $3 million to produce 12 000 tonnes of sorghum under contract in the 2013/14 cropping season.

Minings remained stable at 70.12 points as Bindura traded unchanged at 2.6c and with no activity in other counters.

Hwange closed buyers and sellers at 13c and 16c respectively amid reports that the government turned down the appointment of Godfrey Dzinomwa as MD.

Turnall closed buyers only at 5c amid reports that the firm will next week commission a $2.5 million tile-manufacturing plant in Harare. TSL added 3c or 11.11% to another all-time best of 30c with the tobacco selling season coming to an end tomorrow.

Fidelity Life and NicozDiamond advanced 3.77% and 2.65% each to 13.49c and 1.55c respectively. Cement manufacturer PPC added 10c or 4.17% to 250c.

African Sun added 0.05c or 2.27% to 2.25c and Aico Africa closed 4.55% firmer at 6.90c. Meikles and Padenga gained marginal 0.32% and 0.14% each to 31.6c and 6.91c respectively.

The top faller on the day was ZHL, easing 0.30c or 21.43% to 1.1c while Zimpapers dropped 0.09c or 8.18% to 1.01c. Natfoods closed 2.04% weaker at 240c.

Astra closed buyers and sellers only at 4.50c and 5c after publishing a further cautionary statement saying discussions are still in progress that may result in a transaction that may have a material impact on the value of the company's shares.

The Zfn board continued to recover with only 2 indices Insurance and Truworths Retail Index closing in the red after dropping 1.84% and 0.07% each to 136.48 and 315.41 respectively.

The Datvest All Share Index added 1.81 points or 1.28% to 143.38 while the FBC ZSE-10 Index was 1.10 points or 0.75% better at 147.78. Gains in bankers Barclays, FBC and NMB saw the Banking Index rising by 5.80% to 80.72.
- zfn