Delta cheers subdued ZSE

opened the week on a subdued note with turnover of only US$288 854.
Trades were largely concentrated in Delta Corporation. Marginal gains in DZL and PPC were overcome by Hippo which shed US4c on very thin volumes as the industrial index fell 0,39 percent to at 130,78 points. Yesterday, turnover improved to US$536 881 from about 8,3 million shares.
“Lack of clarity regarding the finalisation of the constitution making process, and consequently timing for the referendum and elections has caused some lack of confidence on the local bourse as indicated by the declining indices,” said Imara Securities yesterday.
“However, demand is somewhat picking up on the back of the on going reporting season which has seen a number of companies especially the banks reporting impressive results, and exhibiting confidence that they will be able to comply with the recently hiked minimum capital requirements.”
National Foods Ltd led the risers after gaining US5c to US125c, Hippo rose US4c higher at US105c while Old Mutual added US3,9c to US155c.
Other gains were in Afdis which climbed US1c to US15c while Delta inched US0,80c to close at US69c. On the downward side was Colcom which lost US6c to US23c and Dairibord eased 0,52c to US14c.
Aico Africa, PG Industries and Turnall went down US0,5c each to US9c, US5c and US4c respectively. All mining stocks were unchanged.
The ZSE performance has largely been depressed since the beginning of the year.
During the first half, the industrial index declined 9,7 percent, while the mining index slumped 26 percent in the same period.
This is despite the fact that a number of companies reported strong growth in earnings.
Foreign participation remains depressed, with most foreigners emerging more as sellers as compared to the prior comparable period.
Total foreign sales in the first half more than doubled to US$124 million, compared to US$68 million during the same period last year.
Analysts have largely attributed the increase to the ongoing debate on indigenisation and capital redemptions due to the global financial crisis especially in the eurozone.
Foreigners largely participated in the purchase and sale of Delta shares, accounting for 22 percent of total turnover. Foreigners were also interested in Econet, Meikles, Innscor, OK, Old Mutual and ABCH.
The largest trades by volumes in six months to June involved the sale of M&R South Africa’s 47 percent stake to a local consortium.
Econet Wireless also disposed of its 19 percent stake in Afre to NSSA at a significant premium. Other notable trades were the re-acquisition of a 12 percent stake in Dawn Properties by African Sun in a bid to counter litigation initiated by Dawn over their hotel leases.
Delta accounted for most of the trades at US$89 million, representing 35 percent of total trades. Econet accounted for 18 percent of the total trades at US$46 million.