ZSE bull run continues albeit in subdued trades
HARARE- The Zimbabwe Stock Exchange opened the week higher albeit marginally as investors continue to scrap for the few shares available on the market.
Big caps Old Mutual and Econet continued on their bull run adding 0.75c and 0.05c respectively. The Insurance heavyweight traded at 377c with only 1236 shares exchanging hands while the telecoms giant traded at 30.05 with 614,611 shares changing hands.
Consequently the main stream index added a marginal 0.10 points to close the muted session at 160.40. Demand for the blue chips remains elevated especially in Econet however sellers remain elusive. OkZim also recorded a notable trade; the retailer traded flat at 7c with 632,020 shares changing hands.
OKZim management have indicated that they will focus on improving market share by efficiently using existing capacity, rolling-out bakeries as well as growing fruit & veg and butcheries; analysts believe the group can extract higher margins from these units. Emphasis will also be placed on cost reduction and margin improvement.
Turnover tumbled by almost 95% to $237,672 from Friday. Axia and Dawn properties traded flat with 12,906 and 14,631 shares changing hands at 8.10c and 1.3c respectively. Bankers FBC added 0.2c to close at 10.80c with 19,384 shares exchanging hands.
Activity remains subdued on the Mining sector despite some of the companies having been on the press recently for different reasons. Bindura which underwent recent board changes due to some fraud allegations did not trade, but remained well bid with no sellers in sight.
Despite successfully concluding its Creditors’ Scheme, investors remain not keen on Hwange which 32,000 shares at 2.35c. Hwange Colliery held a creditors’ scheme of arrangement meeting where 88% of the creditors voted in support of the scheme while 10% voted against. The company is also seeking to raise up to $15m to fund its short term capital needs after its creditors agreed to enter into structured payment plans with the coal miner. The resources subsector closed 69.23 adding 0.02points