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THE Zimbabwe Stock Exchange industrial index declined yesterday on losses in selected heavyweight stocks while the mining index of four trading shares remained unchanged. After trades, the industrial index was marginally down 0,93 percent or 2,02 points to 215.24 and the mining index was unchanged at 47.02.
Daily turnover dropped to below US$500 000 as investors exercise caution especially over the direction of the economy.
Leading the fallers was Hippo Valley Estates which fell 8,7 percent to US105c. The company said its performance was affected by the increase in cheap sugar imports.
It has a year to date loss of 5,41 percent. Colcom fell 7,4 percent to US26c. The company said invested in new equipment to improve production inefficiencies. Delta Corporation, the largest company in value terms declined by US3,3c to US150c.
CFI lost US0,05c to US3,70c ahead of the release of its September results. The group has also not issued a statement following news that one of its poultry divisions is dumping chickens which would have died of starvation on the outskirts of Harare.
Afdis was down US0,09c to US35c. The management has proposed US$5 million rights offer. The group said US$1,5 million will pay off a shareholder loan while US$3,35 million will go towards settling the difference on acquired bottling plant and ancillary equipment.
The losses were however, restricted by gains in Cafca which added 1c to 32c leading the days risers. Econet gained US0,19c to US62,20c and TSL added US0,01c to US35,01c.
Banking counter ABC put on a marginal US0,01c to US50,01c. The banking sector says the move by the government to assume RBZ debt will restore confidence and improve liquidity.
Finance Minister Patrick Chinamasa said Government was working on a bill that would give effect to the assumption of the Reserve Bank of Zimbabwe’s US$1,3 billion debt.
Aico Africa Ltd was bid and offered at US6c and US6,5c in the wake of its results where the group reported a US$27 million loss.
AICO Africa Ltd is also facing foreclosure and possible sequestration of its 50 percent Seed Co Limited stake for loan guarantees it pledged on behalf its subsidiary companies.
The group guaranteed loans advanced to the Cotton Company of Zimbabwe, its 100 percent subsidiary and Olivine Industries, a company it has 51 percent shareholding.
The threatened action by lenders has been triggered by Cottco’s projected US$23 million loss for the year ending 31 March 2014, which may result in the cotton company failing to settle its debts.
Cottco is borrowed to the extent of about US$80 million. About US$23 million of the US$33 million Afreximbank facility is expected from ring-fenced forward sales of cotton lint.
Online Reporter