Harare — INDUSTRIALS continued trading weak on the Zimbabwe Stock Exchange, shedding off 0,96 percent to close the week lower at 157,77 points.

The mainstream industrial index lost 3.86 percent compared to the previous week while the mining index slid 7,59 percent as profit-takers descended on the market.

During the period under review, the resour-ces index was also on a downward trend shedding 1,27 percent to close at 206.11 points after the bourse had been bearish for a week after rallying for a few days.

Dual listed, PPC slowed down the market, as it continued its downward trend shedding US15c to trade at US260c.

The cement manufacturer had opened the week low shedding 10 cents to the day at US270 cents.

Hippo, the producers of sugar, was US4c softer at US110c and TA lost US2.10c to close at US63,90c.

Aico Africa and Innscor were both US2c lower at US23c and US63c respectively

Trading in the positive territory, Chemco pushed up US5c to US60c as Colcom rose US3.60c to close at US25.60c.

Radar and Seed Co advanced a cent each to close at US19c and US100c while CBZ was US0.50c firmer at US16,50c.

Among the resource counters coal producer Hwange, dropped US3c to end the day at US35c and Bindura retreated a cent to close at US23c.

Gold producer Falgold, however added US2c to close at US9c and Riozim was unchanged at US287c.

Analysts this week said the stock market is bearish because of poor liquidity on the market.

"Going forward we are going to see the market trading side ways, as long as we have the liquidity crisis.

"Unless the situation improves we are going to have the current scenario until the end of the year.

"Improved production in companies is likely to give impetus to fundamental trading, however it will not be much given serious shortages of working capital," one stock broker said.

Lending on the market is currently limited to short-term financing for working capital requirements with short payback period.

Banks are expected to orient their lending portfolios to achieve 30 percent of their deposits to the agricultural sector, 25 percent to manufacturing and mining sectors and 20 percent to other remaining sectors.

Kingdom Stockbrokers said, the economic environment will continue to present many challenges, particularly because of pressures emanating from liquidity shortages.

"With unavailability of lines of credit and direct foreign investments in the near future, the liquidity challenges will persist and this impacts negatively on the capacity of banks to raise deposits of a long term nature which can allow them to on lend for long term projects," KSB said.

According to figures released by the central bank as at October 31 2009, total deposits with banks amounted to US$1 billion, up 44 percent from US$706 million in June 2009.

CBZ had the largest deposits with at total of US$250 million followed by Stanbic with US$150 million while Barclays and Standard Chartered had deposits of US$112 million and US$103 million respectively.

The four institutions held 61 percent of the total deposits.

The sector also registered an improvement in loans and advances of US$501 million from US$263 million in June 2009, which has resulted in a corresponding increase in the sector loans to deposit ratio, which stood at 49,3 percent as at October 31 from 37,3 percent recorded in June this year.