Industrials sink as heavyweights selloff persist

Published: 15 April 2014

ZSE's Industrials sank to another lowest level since January last year during Tuesday's trading session as an escalating selloff in heavily capitalised counters persisted amid significant volumes.

Daily market turnover significantly improved to S2.894 million on a volume of 10.63 million shares against yesterday's $1,784 million on a volume of 6.318 million shares.

The equities market remains vulnerable on the back of an underperforming economy characterised by rapidly declining consumer disposable incomes.

The Industrials Index eased 3.28 points or 1.91% to 168 as heavyweights OK Zimbabwe. Delta. BAT, Econet and Innscor weakened further.

Heavyweight retailer OK Zimbabwe closed 5.56% weaker at 17c and cigarette manufacturer dropped 50c or 4.55% to 1050c. Conglomerate Innscor eased 3.24% to 59.99 while its associate Natfoods dropped 5c or 2.33% to 210c.

Blue chip Delta recorded a 1.82% decrease of 2c to 108c while Econet traded 1.64% weaker at 60c amid reports that the firm has declared that it will never back down on its earlier demands for banks to pay a prescribed tariff in order to gain access to its transaction messaging system.

Meanwhile, Hippo was amongst the top risers on the market, adding 0.50c or 0.82% to 61.50c.

The Minings Index remained stable with Bindura and RioZim trading unchanged at 1.3c and 20c respectively.

NTS led the top 5 risers adding 1c or 58.82% to 2.70c while Pioneer advanced 1c or 20% to 6c. Pearl Properties gained 1.92% to 2.65c and clothing retailer Edgars picked a marginal 0.08% to 13.11c.

NicozDiamond closed sellers only at 1.3c after publishing a joint cautionary statement with ZHL saying the companies are engaged in negotiations for the disposal and acquisition, respectively, of a business, which if successful, may impact on the value of their shares.

Top loser on the day was TA Holdings, shedding 0.75c or 11.11% to 6c while SeedCo dropped 6.67% to 70c. Star Africa eased 0.05c or 5.56% to 0.65c.

Other counters to trade in the red were CFI, Meikles and Padenga. dropping 0.45%, 0.06% and 1.30% each to 2.21c, 18c and 7.6c respectively.

The benchmark Datvest All Share Index dropped 1.98 points or 1.69% to 115.16 taking its losses in the year so far to 15%. The blue chips measure, the FBC ZSE-10 Index was 2.77 points or 2.27% weaker at 118.92 and is now 16.09% down since January.
- zfn