Minings falter as Falgold plunge 60%

Published: 28 October 2013

Industrials scratched out modest gains at week's ending largely on higher bids in Colcom, TSL and TA Holdings while Falgold shares plunged 60% to trade at 4c, its lowest level in 2 years, resulting in the Minings Index dropping 1.02%.

Falgold, which shut down its Dalnv Mine in Kadoma in September after Zesa Holdings disconnected power supplies to the mine over debts, at its peak traded at 35c in July 2012.

The Minings Index eased 0.49 points or 1.02% to 47.48 with Falgold closing as the top loser, dropping 60% to 4c while RioZim eased 2c or 6.25% to 30c.

Bindura closed buyers and sellers only at 1.8c and 2.6c only after reports that the firm's revised mining plan has started bearing fruit after a marked increase in recoveries and a decline in costs.

There was just one counter to trade in the green during Friday's uninspiring trading session where 7 blue chips that recorded trades closed unchanged at previous positions having recorded losses in the week.

The Industrials Index gained a marginal 0.13 points or 0.06% to 209.71 as Colcom, TSL and TA Holdings were bid higher at 28c, 35c and 6.5c in that order.

Blue chips Delta, Econet, Innscor and OK Zimbabwe traded unchanged at 135c, 60c, 85c and 26c respectively.

The only counter to trade in the positive was Star Africa which added 0.11c or 7.86% to 1.51c.

Trades were recorded in 29 counters of which 6 of them managed losses, one in the positive and the rest unchanged at previous positions but the daily market turnover remained well above the psychological $1 million level.

Daily market turnover dropped to $1,200 million on a volume of 5.590 million shares against yesterday's $1,814 million on a volume of 12.52 million shares.

Week on week turnover increased to $8,059 million on a volume of 40.63 million shares versus last Friday's $5.09 million on a volume of 49.47 million shares.

Counters trading on the downside were Astra and Fidelity Life which dropped 9.09% and 8.33% each to 5c and 11c respectively.

Bankers Barclays closed 4.44% weaker at 4.3c while Edgars eased a marginal 0.08% to 12c.

The Zfn board ended the week in the red with 6 indices in the red while the Conglomerates Index managed 0.06 points or 0.09% gain to 74.41 on gains in Star Africa.

The Datvest All Share Index was 0.31 points or 022% weaker at 139.80 while the heavyweights measure, the FBC ZSE-10 Index was unchanged at yesterday's level as no movement was recorded in the markers top counters.

- zfn