ZSE Industrials continues to recover

Published: 23 August 2013

ZSE shares continued to recover on Friday as investors took the opportunity to buy cheap stocks (blowing a steep plunge in the past 2 weeks with the swearing in of President Mugabe yesterday paving way for the appointment of a new Cabinet.

In his inaugural speech President Mugabe outlined the priorities of the new Cabinet he will announce soon with civil servants' salaries, revival of industry, employment creation through indigenisation, increased electricity generation, agriculture support and infrastructure development topping the list.

The Industrials Index gained 0.76 or 0.41% to 183.90 helped largely by gains in Innscor and Natfoods while heavyweights Delta and Econet traded on the downside.

Delta remained in the red after dropping 125cor 1.11% to 111.75c while Econet eased 0.01 cor 0.02% to 49.99c after the telecoms group became the first local mobile phone operator to introduce fourth generation (4G) service, a high-speed mobile telephone technology that will result in faster data transmission speeds and call connectivity.

Innscor closed amongst the top gainers on the market adding 6c or 7.50% to 86c together with its associate Natfoods which closed 4.76% firmer at 220c.

The Minings Index gained a marginal 0.09 points or0.19% to48.14 as Bindura recovered a marginal 0.01 cor 0.56% to 1.81c. RioZim dosed sellers only at 35c in the wake of reports that the mining firm is set to resume operations at Is Cam & Motor mine in the second quarter of next year.

Daily market turnover dropped to $2,048 million on a volume of 44.59 million shares against Wednesday's $2,093 million on a volume of 8.613 million shares.

Weekly turnover closed lower at $8,844 million on a volume of 37.990 million shares against last week's $20.57 million on a volume of 126.4 million shares.

Bankers NMB led the top risers on the day adding 2c or 33.33% to 8c while cement manufacturer Lafarge gained 10c or 9.09% to 120c.

The last top 5 riser was Seedco which rose 2c or 2.67% to 77c. African Sun added 0.04c or 1.93% to 2.11c.

RTG closed buyers and sellers only at 1.2c and 1.5c respectively after CE Tendai Madziwanyika told an analyst briefing on Wednesday that the group has turned around with the Rainbow Towers Hotel recording the highest occupancy rate of 76% in May 2013 whilst the group recorded highest revenue in any one month since dollarization of $2,935 million in July 2013.

Two more counters to trade on the downside were Art and PPC which eased 10% and 0.86% each to close at 0.45c and 230c respectively.

FBC closed buyers only at 9c after CE John Mushayavanhu told an analyst briefing Wednesday that FBCH banking businesses will continue focusing on liquidity management and asset quality in addition to increasing digital and electronic transactions.

Tumall closed buyers and sellers only at 4c and 5c respectively after MD John Jere told an analyst briefing on Wednesday that the group is forecasting to break-even in FY13 as management is focusing on reducing debtors, improving cashflows and investing in high end roofing material such as concrete tiles which have more resilient demand.

The benchmark Datvest All Share Index added 0.97 points or 0.80% to 122.99 while the blue chips measure, the FBC ZSE-10 Index was 0.90 points or 0.80% firmer at 125.54.

Gains in Innscor buoyed the Conglomerates Index to rise 3.63 points or 5.13% to 74.50 while the Allied Bank Banking Index was 1.05 points or 1.39% firmer at 76.28 on gains in NMB.

There were only to sectors to close in the red with the Dual Listed Index easing 0.34 points or 0.18% to 181.67 while the Manufacturing Index dropped a modest 0.08 points or 0.04% to 218.73 weighed down by Delta's loss.
- zfn