Blue chips boost ZSE as losing streak ends

percent, largely driven by selected blue chips as the key index closed at 159,16 points.
Minings, however, dropped 2,75 percent to 228,61 points as economic and political outlook continues eclipsing the performance of the domestic bourse.
Corporate activity was in focus with companies reporting mixed sets of results but this had very little impact on the overall market performance.
Some companies have posted good results, with a few bouncing from previous losses and declaring dividends but some plunged into losses largely due to inadequate working capital and low capacity utilisation.
The lack of adequate funding that is long-term in nature for recapitalisation of most companies on the ZSE has been a major contributor to the overall performance of the ZSE.
Capacity utilisation for most companies level is still very low.
In addition, uncertainties on the political front will continue dampening the investors’ sentiment. The cash-flows and profitability, which are the key milestones for performance appraisal, may be difficult to achieve under the current conditions for most companies.
Yesterday, on the upside was Hippo gaining US5c to trade at US121c and Seed Co rose US3c to trade at US138c.
Colcom and the insurance giant Old Mutual moved up a cent each to close at US42c and US161c respectively while TPH ended US0,70c higher at US8,70c.
Banking counter Interfin led the shakers with a US5c loss at US20c with Innscor and Meikles down a cent each at US61c and US44c.
FBCH retreated US0,90c to US4,10c and AICO Africa dropped US0,50c to trade at US17c.
Hwange dragged the resources index after dropping US3c to settle at US72c and Falgold was offered lower at US6c.
RioZim was unchanged at US189c and Bindura gained US0,01c to trade at US10,01c. RioZim wanted Essar to underwrite its US$40 million rights issue approved last year by shareholders but the Indian firm was insisting on buying 51 percent equity of the diversified resource firm.
Daily turnover declined to about US$2 million from US$2,9 million realised on Tuesday.