THE Zimbabwe Stock Exchange mainstream industrial index reversed last week's gains, falling 0,06 percent lower to close at 133,26 points after succumbing to losses in selected counters.

Activity was low among blue chips while the resources index traded in the positive, gaining 1,35 percent to close at 83,59 points, following a firm US13c bid for Falgold.

Turnover was only US$551 000 in the day and Innscor contributed 21 percent (US$114 000) to market turnover.

CBZ, one of the best performing stocks last week, lost US0,50c in yesterday's trades to close at US12,5c while insurance giant Old Mutual was up US3c to US151c.

Analysts say the year to date performance of the industrial index indicates a bearish trend across the listed counters, a result of the continued uncertainty in the market. The industrial index has lost 9 percent in the year in a market which does not reflect the improved earnings, especially in the big caps.

TA Holdings also traded a cent lower at US10c. TA is considering pulling out of Zimbabwe Fertiliser Company and PG Industries as the businesses are now regarded not core to group ambitions.

TA controls 20 percent in Zimbabwe Stock Exchange- listed PG and 22 percent in ZFC. Pioneer and Old Mutual advanced US3c each to trade at US151c and US5c respectively.

Meikles was up 0,69 percent after releasing its full year results, showing a loss for the year of US$3,4 million from a profit of US$6,1 million in the prior year.

Companies are failing to increase production due to lack of funding. However, despite top line growth ahead of inflation, heavy interest costs continue to negate positive performance in many listed companies.

Several other companies remain largely undercapitalised, hampering earnings growth and curtailing share price performance.

RioZim recently concluded a rights offer, which should see its huge debt being paid off, thus lowering finance costs and possibly returning the group to viability.