Industrials reel under selling pressure in blue chips

Published: 03 September 2013

ZSE's Industries remained in the red on Tuesday amid heavy selling in blue chips as Members of Parliament were being sworn in before the Clerk of Parliament paving way for the appointment of Cabinet ministers widely expected this week.

The Industrials Index eased 2.99 points or 1.66% to 177.32 on the back of losses in heavyweight counters Delta, Econet and Innscor. The mainstream Index has now dropped 23.96% from its all-time best of 233.18 on August 1.

Blue-chip Delta dropped 3.10c or 2.87% to 104.90c trimming its market cap to $1,288 bin compared with an all-time best of $1,927 bin in June while Econet eased a marginal 0.04c or 0.08% to 48.96c. Conglomerate Innscor traded 2c or 2.44% weaker at 80c. Meanwhile OK Zimbabwe closed buyers and sellers only at 18c and 20c respectively.

The Minings Index remained stable at 48.73 points as Falgold closed sellers only at 10c amid reports that it has shut down Is Dalny Mine in Kadoma after Zesa Holdings disconnected power supplies to the mine over debts.

Daily market turnover improved to $1,079 million on a volume of 5.078 million shares against yesterday's $939 475 on a volume of 2.823 million shares.

Only two counters traded in the green, African Sun which advanced 0.10c or 5.26% to 2c and Hippo which added 5c or 4.76% to 110c.

TSL led the top fallers on the day, shedding 3c or 9.38% to 29c while bankers Barclays eased 0.20c or 5.88% to 3.20c.

Dual listed Old Mutual dropped 5c or 2.13% to 230c and ZPI traded 0.01 c or 0.99% weaker at 1c. FML eased 0.10c or 0.83% to 12c.

The Zfn board remained largely in the red with the Datvest All Share Index easing another 1.35 points or 1.12% to 119.19 while the blue chips measure, the FBC ZSE-10 Index was 1.38 points or 1.12% weaker at 121.44.

The Conglomerates Index dropped a significant 2.38 points or 3.29% to 69.98 while the Manufacturing Index lost4.15 points or 1.94% to 209.54.

Gains in Hippo helped the Agri-Industrial Index to gain 1.48 points or 2.02% to 74.89 while another gain in African Sun saw the Tourism Index adding 0.48 points or 2.03% to 24.43.

- zfn