ZSE industrial index rebounds

sceptical about the new indigenisation and empowerment regulations.
The main industrial index, however, slightly advanced 1,2 percent compared to week ending April 8, at 158,26 points.
Weekly turnover stood at about US$9,5 million after 79 million shares changed hands. Econet was the most liquid counter.
Econet’s high turnover was driven by a special deal involving a block of 625 000 shares valued at US$3,1 million. The transaction was executed at US485c involving foreign investors on both the buy and sell side.
Econet share is the most liquid on the local bourse and it has continued to attract some offshore funds. Seed Co came in second with total revenue amounting to US$968 830, Dairibord at US$759 421, Delta at US$456 067 and CBZ at US$455 266.
While Zimbabwe’s outlook for the mining sector looks positive, this could be impacted adversely by the latest indigenisation laws.
Gazetted in 2007 with supporting regulations issued in February 2010, Zimbabwe’s empowerment laws require all foreign-owned companies with a net asset value of US$500 000 to localise ownership of at least 51percent.
Last month, the Government issued regulations which require all foreign-owned companies with operations in Zimbabwe to submit plans on how they intend to meet the empowerment thresholds by May 9 this year. If the Government approves the plans, foreign-owned companies will sell 51 percent of their shareholding to locals within six months.
Reactions to these regulations have been negative on the ZSE resource shares and other exchanges.
Aquarius’ share price dropped 6,9 percent on the Australian Stock Exchange following the minister’s announcement. Aquarius has a 50 percent stake in platinum giant Mimosa in Zvishavane.
Zimplats Holdings share price witnessed a similar trend, falling by 8,32 percent.
Government has maintained that the indigenisation is irreversible.
Analysts say going ahead with the empowerment programme could result in mining houses reducing their level of investment.
After trades on Friday, the gains in heavyweight counters lifted the industrial index by one point or 0,63 percent to 160,31
Aico Africa, Delta and Dairibord moved up a cent each to close at US18c, US75c and US0,21c respectively. Barclays put on US0,45c to US6,95c while Powerspeed advanced US0,29c to US1,89c. Heading southwards were Natfoods which dropped US0,2c to US0,96c and TSL lost US0,50c to close at US8,50 cents.
Hunyani and starafrica went down US0,30c to US4c and US2c.
Bindura lost US0,60c to US9,40c and RioZim was offered lower at US160c.
Falgold and Hwange where unchanged at US0,06c and US0,71c.