Industrials rebound on increased volumes...

The Industrial Index closed the week 0.16% up at 168.36pts as retailers OK Zimbabwe advanced 6.87% to 14c and financial services group Old Mutual notched 0.42% to 237c. Weakness that creeped in the last two trading sessions subsided and demand revived droving the above mentioned two risers up and saw heavies Delta , Econet, Innscor , Seedco and Barclays holding at their prior prices of 115c, 54.9c, 59c and 4.5c respectively. The gains were mitigated by staple consumer goods supplier Natfoods’ 5.88% retreat to 320c on a mere $973.00 worth of trades, Edgars 10% slump to 9c as buyers discounted the small supply in the market and brick marker Willdale slumped 28% to 0.18c.

Miners trended in the negative shedding 3% to 58.13pts as Bindura slid 3.85% to 5c on net selling. The other miners Hwange and Rio traded unchanged at 4c and 15c respectively. The three above mentioned miners are at various stages of capital raising. Bindura in a repeat cautionary advised that the Smelter restart capital raise is work in progress, Rio Zim is waiting for shareholder nod on its $10mn rights issue while the Reserve Bank announced this week that it also arranged an US$18 million facility to be used by Hwange for the purchase of equipment that they need for enhancing coal production.

Volumes traded firmed 74.94% to 19.93mn buoyed by 15mn Mash special bargain at 2.7c, Barclays 1.87mn shares transacted at 4.5c and Econet 1.31mn shares exchanged at 54.9c. Similarly turnover grew 79.40% to $1.82mn with leading contributions in Econet ($0.72mn), Delta ($0.46mn) and Mash ($0.41mn). The ZSE today ended in a net inflow position of $0.341mn with foreign demand surging 384.98% to $1.13mn and sales increasing 81.35% to $0.79mn. Foreign buys were 99.23% from Econet and Mash while sales were made up of Econet and Lafarge only.

ZSE trades soft as TA and ABCH delist...

The ZSE was pegged back for the second day running in Thursday trades, as earlier gains fail to hold. The main Industrial Index retreated 0.33% to 168.09pts despite the market having no breadth as declines and gains were evenly balanced at a count of five apiece. Beverages group Delta, the market’s top capitalised stock, swayed the direction of the market after it softened -0.86% to 115c. Hefty losses for the day were however seen in cement manufacturers Lafarge and cables manufacturers CAFCA that shed similar margins of 20% and closed the day at identical prices of 40c. DZLH was the other shaker of the day after forgoing -5.56% to 8.5c while Zimplow completed the shakers with a -2.99% decline to 6.5c. Zimplow’s trading price is now a marginal 0.02c above the price of the proposed rights issue price of 6.48c, with the rights issue set to close tomorrow 13 February 2015.

The losses were mitigated by gains in five stocks led by property group ZPI that rebounded from yesterday’s slump recovering +9.1% to 1.2c. Diversified group Meikles added +7.69% to follow while Hippo recovered 2% to 46c on resurgent demand. FMCG conglomerate Innscor ticked up +1.56% to 59c on firm demand. Old Mutual completed the risers for the day on a +1.29% uplift to 236c. The mining index was flat at 59.93pts for the fourth session running as the only active stock in the cluster RIO ZIM traded stable at 15c.

The number of active stocks for the day improved to twenty one from yesterday’s sixteen though trades were spread to lower value stocks resulting in value of trades at $1.01m which fell -23.5% short of yesterday’s outturn. Volumes of the day surged 721% thanks to block crosses in property concern Mash where 9.4m shares exchanged hands at a price of 2.7c yielding the values topping turnover of $255,701. The foreign spend came off 80% on yesterday to $0.23m while portfolio disposals were down 65% at $0.44m leaving the market in a net funds outflow position of $0.21m.

Meanwhile ABCH and TAH were officially delisted from the bourse today following the buyout of minorities in the two companies by their major shareholders. Elsewhere AFDIS released its first results since the refurbishment of its plant to localise production that saw gross margins improve to 50% and the company’s attributable earnings going up 48% to $1.9m; ; today it closed buyers only at 40c

Market slows down

There was a marked slow done in activity with turnover falling below the $1mn mark as a 40.56% decline took it to $0.70mn. Econet had a healthy share of today's trades shoring $500,000.00 or 71.43% of value traded while the rest of the market contributed the balance of $198,478.00 or 28.42%. Foreign trades were in Econet only with buys worth $0.28mn and sales amounting to $0.30mn. Both measures were down with purchases falling 60.52% and sales giving up 56.28%. Volumes of the day were down 27.96% to 4.56mn shares with 52.36% of it coming from Barclays and ZPI.

The industrial Index managed to scratch 0.22% gains to end at 170.28pts bringing its YTD gain to 4.6%. This was on the back of gains in the agricultural and banking sectors. Hippo rebounded 0.22% from yesterday's loss to settle at 45.1c while Barclays continued unbriddled rising 12.5% to 4.5c bringing its YTD gain to 80%. Holding back the market's momentum was Econet that traded light shedding a marginal 0.04% to 55c with net selling at this level and Masimba that dropped 13.33% to close at 1.3c. Masimba the building contractors and manufacturers of infrastructure and construction materials is currently trading under a cautionary. Minings were for the 6th consecutive day stable at 59.93pts with Rio trading unchanged at 15c.

Delta maintained its 116c price on shallow bids and yielded $9,332.20 in value of trades. Innscor did not register trades with buyers raising their bid to 58c and while sellers remain stuck at 60c currently its upper end esistance level. Buyers continue to aggressively look for SeedCo shares at current price of 102c with no real supply coming out. SeedCo is the only listed seed company on the ZSE. Meanwhile the local seed industry will host 2015 Africa Seed Trade Association congress in Victoria Falls from 2-5 March 2015. This is a regional initiative set to promote and finding business opportunities for seed companies, promoting trade for quality seeds and to strengthen communication with the rest of the world among others.

In economic news, the Central Bank is expected to present the Monetary Policy statement this week, a second presentation by the incumbent Governor Dr John Mangudya.

Home
Counter Price   Δ USc % Δ % Δ YTD
ZIMPLOW 8.10 0.28 3.58% 3.58%
SIMBISA 45.00 1.00 2.27% 8.88%
UNIFREIGHT 1.45 0.03 2.11% 2.11%
DELTA 157.52 0.93 0.59% 8.63%
OLD MUTUAL 494.75 2.13 0.43% 9.02%
Counter Price   Δ USc % Δ % Δ YTD
BARCLAYS 5.20 -0.30 -5.45% -13.33%
MEIKLES 30.00 -1.70 -5.36% 7.10%
ECONET 82.27 -3.96 -4.59% -12.90%
ZHL 2.99 -0.10 -3.24% 15.44%
DZLH 11.00 -0.05 -0.45% -1.79%
Market Commentary

Equities soften in Tuesdays trades

The bearish note on the ZSE persisted in Tuesdays trades as all the Indices closed in the red. The mainstream All share Index lost a further 0.87% to 93.84pts, The Industrial Index succumbed to a 0.89% loss to 313.18pts, and the Top 10 Index tumbled 0.1.02% to settle at 93.50pts. The less active Mining Index remained flat at 134.37pts with no activity in the sector. Activity aggregates for the day were mixed with the volumes exchanged falling 16.48% to 1.90m, yielding a value outturn of $1.31m which was 38.87% up from prior session. Delta drove the value outturn for the second consecutive session with a 30.90% contribution, while CBZ, Nampak and Delta emerged the top volume contributors with respective contributions of 19.75%, 14.03% and 13.51%. Local participation dominated as Inflows accounted for 13.83% of the days turn over while, outflows added 18.81% of the same.

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