Delta shares bargain lifts weekly turnover

0,26 percent decline at 165,85.
The mining index of four trading counters was slightly up at 162,18 points after advancing 0,8 percent compared to the week ended July 8.
A special bargain in Delta of about 2,5 million shares worth US$2 million helped to lift the weekly turnover, which came in at US$14,1 million. Shares traded in normal trading were just over 95 million.
The industrial index opened the week lower and was subdued throughout the week.
Since dollarisation, the direction of the market has mainly been determined by the liquidity constraints, which have negatively influenced trading volumes on the ZSE.
Lack of adequate funding that is long-term capital for recapitalisation of most companies has been a major contributor to the overall performance of the stock market.
Most companies are still operating below their installed capacity. According to the Confederation of Zimbabwe Industries, most industrial companies are operating at below half of their production potential.
The structure of funding available is short-term in nature while the requirements for industry are long term. Lack of long-term liquidity has also led to less money finding its way on the stock market.
This is coupled with negative investor sentiment, which is basically the opinion of investors about the future performance of the market mainly due to perceived country risk. Financial resources flow to the stock market if investors expect the market to meet their targets of capital appreciation and capital preservation.
Lack of clarity on indigenisation and empowerment laws and developments of the political front has also affected the performance of the stock.
At the launch of the Medium Term Plan recently, Prime Minister Morgan Tsvangirai said the inclusive Government was not properly functioning. In light of the above, the stock market performance would remain subdued.
After trades on Friday, ABCH and Turnall both gained a cent each to trade at US70c and US15c respectively. TSL was US0,50c firmer at
US9,50c. Meikles gained US0,44c to US33,10c while AICO and Africa rose US0,40c to US25c. The gains were, however, offset by Innscor, which declined US0,6c to US61,40c. Afdis lost US0,40c to US12,60c Padenga lost US0,20c to US5,80c.
Falgold retreated US0,50c to US3,50c and Bindura gained US0,40c to US7c.
Mwana Africa, the majority shareholder in BNC, has agreed to advance US$10 million to its nickel producer to restart operations.
Company sources told Herald Business last week that Mwana Africa, which has a 53 percent controlling stake in BNC, has agreed to immediately release a convertible loan of US$10 million to the nickel producer.
Currently, BNC is under care and maintenance. The Zimbabwe Stock Exchange-listed firm requires about US$50 million for recapitalisation.