25 February 2013

Zimbabwe: Blue Chips Spur ZSE Gains

THE Zimbabwe Stock Exchange last week registered more gains compared to the previous week as blue chips continue propelling the industrial index to new record highs since dollarisation. The mainstream industrial index was up 2,56 percent or 4,65 points to 186,60 points while the mining index advanced 3,91 percent or 3,03 points to 80,46 points.

Turnover for the week was US$8,2 million and shares traded were about 37,55 million. The market opened the week slightly lower with losses in Innscor, TA Holdings and Ariston.

On the upside was Afre Corporation, OK Zimbabwe, Old Mutual and Econet. RioZim put up a significant US10c which saw the mining index rising 6,5 percent. Falcon also gained but Hwange Colliery and Bindura Nickel Corporation slid.

The industrial index was on the rebound last Tuesday on gains in heavyweight stocks. Innscor recovered, Econet extended gains while PPC, Delta and Aico also traded in the positive.

On the downward side were CFI Holdings, Barclays and Truworths. The mining index retreated.

The industrial index extended gains on Wednesday on broad-based gains which were partially offset by losses in CBZ Holdings, FBCH and Fidelity Life and NMBZ. The mining index was unchanged.

Significant gains in BAT Zimbabwe and selected blue chips lifted the industrial index on Thursday but the mining index slipped after losses in Falgold.

The market closed the week slightly lower after the industrial index lost 0,22 percent 0,41 points.

PPC was US10c weaker at US250c, Innscor shed US5,01c to US94,99c and Zimplow retreated US2,80c to US2,50c.

Zimplow last week warned shareholders and investors that the group's financial performance for the full year period to December 31, 2012 would fall below expectations.

The company said its financial results for the period to December 31, 2012 would be below those achieved in the corresponding period in 2011 due to adverse weather, economic and financial factors.

As such, the firm has advised shareholders and investors to exercise caution when dealing in its shares.

The profit warning on anticipated below forecast financial performance, said Zimplow, was based on preliminary review of the group's unaudited financial results.

Econet gained US14,98c to US675c, BAT was up US25c to US575c and Afdis added US2c to close at US17c.

Hwange is set to appoint a substantive managing director soon amid revelations that former MD Professor Godfrey Dzinomwa could bounce back.

While the Hwange board has decided to keep the matter under wraps for now, sources at the listed coal mining firm said the new managing director would be announced soon.

The post fell vacant after former managing director Mr Fred Moyo left in September last year following the expiry of his contract. A veteran miner, Mr Moyo assumed the hot seat following Prof Dzinomwa's departure in 2006.

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