ZSE opens week on a low note

market lacked clear direction amid heavy trading volumes.
A total of 15,8 million shares valued at about US$1,9 million changed hands on the market, dominated by foreign investors, contributing 70 percent capital turnover.
Foreign investors have been exiting the market as outflows continue to outstrip inflows.
The resources index was also in the negative, shedding 0,96 percent to end at 224,98 points after mining giant RioZim lost US10c to trade at US180c.
The industrial index was weighed down by losses in TA, down US2c to US11c and Dairibord, which retreated by a cent to close at US21c.
Fidelity Life also slipped US0,50c to close at US5c while financial counters Barclays and Trust both shed US0,30c to close at US6,20c and US1,50c respectively.
Losses were partially offset by gains in Natfoods, which ended US5c higher at US95c, and telecommunications giant Econet, which improved by US2c to settle at US480c.
Construction giant M&R gained a cent to US18c, beverages maker Delta added US0,50c to US73c and diversified conglomerate Innscor rose US0,3c to close at US61,30c.
In mining, Falgold and Hwange were unchanged while Bindura added US0,90c to trade at US11c.
But the resource index is expected to recover in the second half of the year as analysts predict that there will be a spate of new exploration projects in the sector.
A fresh wave of feasibility studies and renewed merger and acquisition activities among the mining companies is also anticipated.
This prediction was made by Imara African Resources Fund, an equity fund with dedicated focus on mining companies that are primarily active south of the Sahara.
Imara’s Fund manager, Mr Bruce Williamson, based the forecast on the cash-flush position of many players in the mining industry.
He pointed out in his report to international investors: “There are far too many resource companies to mention that have just reported interim or final results of plus 50 percent growth in bottom line earnings!
“Increased volumes and high commodity prices have greatly boosted corporate cash holdings.
“This sets the 2011 scene for more exploration, added pressure to speed up feasibility studies and no doubt a step-up in mergers and acquisitions.”
Zimbabwean stocks remained stagnant last month despite companies releasing their financial results in which some firms reported solid performances.
In the first quarter of the year, the industrial index gained 5,6 percent while the mining index rose 17,8 percent.
Well capitalised stocks, with the support of offshore funds, were the major drivers of the key industrial index.
Trading volumes on the ZSE have been largely affected by liquidity challenges and developments on the country’s political front.
The political environment remains the key to unlocking investments.