Industrials seesaw back into negative territory

Published: 21 November 2013

Activity slowed on the ZSE on Thursday as Industrials closed in modest losses largely dragged by weak trading across the board and retail heavyweight OK Zimbabwe which managed to cancel out gains in Econet and Old Mutual.

The Industrials Index eased a marginal 0.05 points or 0.02% to 217.48 as gains in Econet failed to cancel out losses in OK Zimbabwe which closed amongst the top 5 losers on the market.-Meanwhile, Delta and Innscor traded unchanged.

OK Zimbabwe dropped 0.50c or 2% to 24.50c after recording a limited revenue growth of 5.4% to $243.6 million for the half year ended 30 September mainly due to decrease in demand while profit for the period remained stable.

Heavyweights, Delta and Innscor remained stable at 150.51c and 86c respectively while Econet among top 5 gainers, adding 0.89c or 1.44% to 62.50c.

Old Mutual traded 1.09% firmer at 278.01c.

Volumes dropped with the daily market turnover ending below the psychological $1 million level at $528 944 on a volume of 2.843 million shares against yesterday's $2.119 million on a volume of 11.14 million shares.

The Minings Index gained 0.39 or 0.83% to 47.41 with RioZim leading the top 5 risers, advancing 1c or 3.13% to 33c. Nickel-miner Bindura dosed unchanged at 2c.

Other risers on the day were ZHL and Zimpapers adding 1.45% and 1.25% each to 1.40c and 0.81c respectively.

Art closed buyers and sellers only at 0.35c and 0.6c respectively amid reports that the group is engaged in negotiations with potential suitors for funding to pay off costly short-term debt.

Zeco led the top fallers in rare trades, shedding 0.01c or 50% to 0.01 c while Interfresh eased another 20% to 0.40c in the wake of its announcement of plans to deist

DZHL closed 5.56% weaker at 17c while African Sun dropped 0.10c or 3.70% to 2.60c.

PPC dropped 2c or 0.79% to 250c after reports that the cement manufacturer said it will start constructing a $200 million cement plant in the north-eastern part of the country next year.

Meanwhile, Lafarge closed buyers and sellers only at 110c and 120c respectively after reports that it is diversifying its product portfolio due to a decline in cement demand on the local market and is shifting focus to products such as paint and aggregates to drive revenue.

The benchmark Datvest All Share Index however added 0.15 points or 0.10% to 144.67 while the heavyweight's measure, the FBC ZSE-10 Index was 022% up at 152.09.

The Truworths Retail Index dropped 5.61 points or 1.70% to 324.15 while the Tourism Index was 1.65% weaker at 28.97.

- zfn