ZSE industrial index slips

Daily turnover was US$662 768,32 from 6 548 540 shares traded.
Investor interest in Zimbabwe equities has remained low mainly due to ongoing political and regulatory uncertainties, lack of liquidity and the ongoing eurozone crisis.
Foreign investor interest continues to wane, with an increasing number of foreigners emerging as net sellers.
“The current liquidity crisis has been cited as a major contributor to the current market’s poor performance.
“As interim results for listed companies start trickling in, it seems some local companies remain undercapitalised.
“This can be attributed to the liquidity constraints, lack of FDI and high interest rates,” said Imara Capital in its weekly report.
In six months to June, turnover was US$257 million, 15 percent higher than the prior year, lifted by a series of special bargains during the period.
Special bargains accounted for 25 percent of total market turnover at about US$65 million and most of them were done at a premium to market price.
Market analysts say most stocks “appear oversold” and significantly undervalued.
“We believe that this is an attractive entry point for long-term investors,” said Invictus Securities in its strategy outlook report for H2 2012.
The equities market declined 9,7 percent in 2012 H1 on relatively thin volumes.
Most companies reported positive earnings with a few notable exceptions. Delta Corporation reported 36 percent growth in revenues and 45 percent growth in earning before interests, tax depreciation and amortisation.
Econet Wireless reported 24 percent growth in revenue and 20 percent growth in EBITDA.
TSL reported a 9 percent growth in revenue but 68 percent growth in profit after tax.
Hippo Valley posted an impressive set of results with over 46 percent growth in revenue and 140 percent growth in profit after tax.
For the half-year ended June 30 2012 the market had 29 gainers, 44 decliners and two non-movers.
The biggest gains were recorded by Zeco, rising 1900 percent to 0,20 cents.
Falgold was the best performing mining stock, rising 158 percent after reporting improved profits as a result of the capital injection by its parent company New                    Dawn.
Ariston Holdings successfully concluded a capital-raising initiative closed the half year with a 220 percent gain at US1,6c.
Afre Corporation, acquired by the National Social Security Authority early this year, closed the half year at US6c representing a 100 percent gain.
Significant declines were recorded in Interfresh (-63 percent), Truworths (-61 percent), Murray & Roberts (-51 percent) and Phoenix (-50 percent)
Decliners dominated the market for the period under review, as liquidity challenges persisted in the market.
Both the industrial index and the mining index closed the period in the negative.
The ZSE’s market value fell to US$3, 44 billion to July this year from US$4,17 billion year earlier.
After trades yesterday, Hippo lost US5c to US110c, Turnall was down US1,25c to US5c. Innscor and Seed Co were both a cent lower at US54c and US83c.
Nicoz Diamond lost US0,6c to US1,4c.
On the upside was PPC which gained US2,5c to close at US220c and Afdis gained US0,4c to US12,50c.