ZSE shares dip as earnings season kicks off

Published: 12 February 2014

Trading activity remained depressed on the ZSE Wednesday mostly weighed down by sell-off in Delta while volumes remained low as the December finals earnings season kicked off yesterday with the release of Barclays finals.

Barclays became the first to release December finals yesterday where its loan book grew by 26% with management projecting further growth in lending in FY 14. The performance rather surprised the market as analysts were expecting and still expect banks to report flat if not negative growth in loan portfolios.

Barclays, however, traded unchanged at 4.2c in today's trades.

The big bank, CBZ, is scheduled to release December finals at the end of this month. CBZ remained stable at 15c after announcing the retirement of its chairman Luxon Zembe with effect from February 10.

The Industrials Index eased 1.14 points or 0.59% to 190.82 as blue chips Delta and Innscor closed amongst the top 5 losers while Econet remained stable.

Heavyweight Delta dropped 1.05 or 0.83% to 124.95c while Innscor traded 1.32% weaker at 75c.

Econet closed unchanged at 61c amid reports that the firm has reignited its protracted hostility with fierce rival Telecel Zimbabwe after barring its agents from doubling up as agents for rival mobile money transfer service, Telecash.

Retailer OK Zimbabwe advanced 0.51c or 2.68% to 19.51c and dual listed Old Mutual picked 0.41% to 242c.

The Minings Index remained stable at 33.61 with no activity by the mining counters.

Daily market turnover slightly went up to $320 696 on a volume of 1.554 million shares against yesterday's $285 846 on a volume of 958 810 million shares.

Top riser on the market was Pioneer adding 2c to 5c while DZLH gained 20.83% to 14.50c. FML recorded a 10.53% increase of 1c to 10.50c. African Sun advanced 0.10c or 4% to 2.60c.

Cement manufacturer Lafarge was the top loser on the day, dropping 30c or 27.27% to 80c and Art eased 0.10c or 25% to 0.30c. NTS traded 3.85% at 2.50c.

The Datvest All Share Index ended 0.52 points or 0.40% weaker at 128.41 while the FBC ZSE-10 Index eased 0.38 points or 0.28% to 135.86. The Insurance Index was however 6.20% up at 106.66 buoyed by First Mutual's 10.53% gain.

- zfn