industrial index shedding 0,45 points to close at 132,48 points, as interim
financial results fail to stimulate the local bourse.
Commentaries of companies that have released results so far say they do not
see the current operating environment characterised by liquidity challenges,
erratic supplies of utilities, high cost of finance and shortage of lines of
credit "improving much" during the second half of the year.
Consequently the selling point for some of the companies is the future
prospects and assets, making it a combination of "a future story" backed by
a strong earnings, sales and asset base.
Natfood fell 10 cents to close at 80 cents, Seed Co slipped from 92,50 cents
to 90 cents as Murray and Roberts dipped two cents to 20 cents. CAFCA lost a
cent to close at 13 cents and CFI retreated 0,79 cents to trade at 13,20
cents.
The companies, however, said they are confident of achieving their targets
powered by improved liquidity, low operating costs and increased margins in
their sales
Losses were countered by gains in Pretoria Portland Cement Company (PPC)
which rose three cents to 335 cents as Old Mutual added two cents to close
at 155 cents.
Meikles went up 1,10 cents to close at 27,10 cents, Econet was slightly up
at 466 cents and PGI advanced 0,10 cents to close at 2,90 cents.
The mining index lost 2,99 points (2,24%) to close at 130,36 points due to
RioZim which dropped 24 cents to close at 201 cents. Bindura, Falgold and
Hwange were unchanged at 10 cents, four cents and 22 cents respectively.
Analysts this week, however said short term investors were failing to
realise that there was a difference between a good company and a good
stock, resulting in buying a counter that appeared cheap. On Tuesday the
industrial index lost a further 1,56 points (1,18%) to 130,92 points. Most
heavyweight counters lost ground as Innscor and PPC were each two cents
lower at 48 cents and 333 cents respectively.
Interfin was also down two cents as it settled at 20 cents in the day's
trades. Delta slipped 1,50 cents to close at 48,50 cents as Barclays shed a
cent to nine cents.
Heading northwards were Econet which pushed up eight cents to close at 474
cents and Dairibord which inched up 0,61 cents to close at 9,61 cents.
Meikles ended 0,40 cents higher at 27,50 cents and Zimplow added 0,30 cents
to close at 4 cents.
The mining index retreated 2,72 points (2,09%) to end at 127,64 points as
Hwange shed two cents to close at 20 cents.
Bindura and Falgold were unchanged whilst RioZim added four cents to close
at 205 cents.
After Tuesday's trade and mixed trading that has characterised the equities
market over the past two weeks, some analysts felt it appeared there are
three kinds of investors- those who do not know where the market is headed
and those who do not know that they do not know.
The third type of investor is the investment professional, who indeed knows
that they do not know, but whose livelihood depends upon appearing to know.
On Wednesday the industrial index gained 1,75 points (1,34%) to close at
132,67 points. The cement maker Lafarge rose five cents to 100 cents and
Seed Co was up three cents to close at 93 cents.
Border, Econet and Murray and Roberts rallied 2 cents each to close at 50
cents, 476 cents and 22 cents respectively.
Phoenix led the shakers with a 0,50 cents loss at 2,50 cents as African Sun,
FBCH, Pearl and ZBFH lost 0,20 cents each to trade at 4 cents, 2.80 cents ,
1,80 cents and 5,80 cents in that order.
The mining index went up 4,64 points (3,64%) to close at 132,28 points due
to Hwange which added two cents to close at 22 cents and Bindura rose 0,90
cents to trade at 10,90 cents.
Falgold was unchanged at four cents whilst RioZim dropped two cents to trade
at 203 cents.
Despite liquidity challenges currently prevailing in the country more than
5,2 billion shares worth US$255,5 million changed hands on the local bourse
for the eight months to August 31, ZSE CEO Emmanuel Munyukwi said this week.
There has been a steady increase in the volume of shares compared to the
same period last year largely due to a significant drop in share prices.
Last year between February 19 and December 31, 4,5 billion shares valued at
US$413 976 724 traded on the local bourse with foreign trades accounting for
35,3% of the figure.
The indigenisation regulations announced early this year, knocked down the
market significantly resulting in foreign participation on the market
declining.
Paul Nyakazeya
No comments:
Post a Comment