Bears continue to haunt stock exchange

requires foreign-owned firms to sell a majority stake to locals, continue to take its toll on the equities market.
Consequently, foreigners have largely turned into sellers as they seek to reduce exposure.
Foreign inflows amounted to US$2,22 million against outflows of US$3,14 million.

Government announced last week that 137 mining companies failed to submit proposals in line with the empowerment laws and were given 14 days to comply.
Failure to file acceptable plans could result in withdrawals of their operating licences.
The affected companies include Rio Tinto plc’s Murowa Diamonds, Anglo America’s Unki Platinum Mine and gold producer Metallon Zimbabwe.

There is now a general feeling that foreign firms were delaying in submitting their plans hoping the policy would cease to be on the national agenda.
But the National Indigenisation and Economic Empowerment Board announced last week that it was stepping up efforts to ensure that all foreign-owned firms comply with the laws through a wide scale compliance audit expected to commence this month.

Apart from indigenisation policy pressures, the equities market, which has become more integrated with global markets because of the multi-currency regime, has of late been also negatively affected by the global economic slowdown and fears of a possible double dip.

The market opened the week lower with both indices closing the day in the red.
The mainstream industrial index dropped 0,68 percent to 156,87 points as losses in 12 stocks weighed against gains in seven counters.

The bearish sentiment persisted on Tuesday as the industrial index declined 0,86 percent at 155,52 points.
The industrial index recovered in mid-week trades to put on a marginal 0,14 percent to 155,73 points. Risers dominated the movers list as 15 counters gained against seven losers with trading much thinner in normal trades that saw the value dropping to US$747,319 from US$1,4 million.

On Friday, the mainstream index slightly gained 0,65 percent to close at 155,82 percent.
Cement manufacturer Lafarge advanced US5c to US75c while Seed Co and ZBFH rose US2c to US122c and US16c.

Delta gained US1c to US72c, CBZH advanced US71c at US13,81c and Afdis pushed up US50c to US13,50c. The gains were offset by losses in Hippo which lost US5c to close at US85c and ABCH shed US3c to US83c.

Zimpapers and ZHL retreated US5c to US95c and US1,45c respectively. Week on week the industrial index lost 1,34 percent.
The mining index lost 0,63 percent at 152,42 points. Hwange was offered lower at US59,50c. Week on week the mining index lost 0,29 percent.