Delta accounts for 26% shares on ZSE

Published: 14 May 2014

Delta Corporation accounted for a staggering 43 percent of the 26 million shares that changed hands on the Zimbabwe Stock Exchange the entire previous week.

Statistics from ZSE show that volumes traded totaled 25,82 million at an average of 5,16 million shares per day. Weekly turnover was $10,9 million while daily turnover during the same period averaged $2,1 million.

During the period under review the highest activity was recorded in brewer Delta, which accounted for 42,9 percent, followed by Econet at 38,3 percent and BAT, which constituted 5 percent of the week's total trades.

Market capitalisation rose 2,06 percent $4,8 billion as the industrial index closed the week stronger at 171 points supported by increased activity in heavyweight stocks.

According to IH Securities, the biggest gains of the week were registered in corrugated packaging maker Hunyani, which rose 65,23 percent, sugar processor Starafrica 21,43 percent and transport and logistics concern Pioneer, with 16,67 percent increase. Hunyani closed the week at 2c, Starafrica 0,84c and Pioneer 6,93c.

The week also saw significant support returning to bellwether stocks namely Delta, which registered 2,99 percent, Econet 3,38 percent and Innscor 4,39 percent. Delta closed at 119c, Econet 66,32c and Innscor 66,31c.

ZB, ZPI and Zimplow, down 33,33 percent, 1 percent and 12,73 percent respectively recorded the biggest losses.

Market news was dominated by Zimplow, which registered mixed results after it was weighed down by Barzem and CT Bolts. Earth moving, lift trucks and generators declined 70 percent compared to last year.

CT Bolts recorded a 24 percent decline in volumes while tractor volumes from Farmec's mechanical agricultural division rose 12,5 percent in the same period.

Mealie Brand total implements volumes rose 38 percent. Zimplow is looking to dispose non-core assets and continues to focus on the reduction of overheads.

Dawn Properties plans to dispose of three of its hotels for a consideration of $18,5 million. The three hotels up for sale include Beitbridge Express, Great Zimbabwe Hotel and Hwange Safari Lodge. Mauritius based BTI International is the advisor of the transactions.

Willdale shareholders approved a $3,3 million rights issue, with funds targeted at recapitalisation operations.

The funds are earmarked for repaying a bridging loan facility, increasing output and increase capacity utilisation from 30 percent up to 60 percent as the listed brick maker eyes a return to profitability this year.

Also in the news was the imminent resumption of the interbank market soon to be operational, with the Afreximbank facility agreements currently being finalised.

Indications are that banks will receive the facility agreements next week. The $100 million Afreximbank facility is expected to assist in addressing the liquidity challenges facing the banking sector.
- The Herald