ZSE maintains momentum

20 Oct, 2017 - 00:10 0 Views
ZSE maintains momentum

eBusiness Weekly

Gains on the Zimbabwe Stock Exchange continued for the week ending Wednesday 18 October 2017, but were slightly lower than those of the previous week ending 11 October 2017.
At the close of trading on Wednesday this week, the main Industrials Index had gained 5,91 percent to 515,95. The gains were however lower than the 12,52 percent that was recorded for the same period last week. The main industrials index now has a year to date gain of 371,42 percent.
The Mining Index continued on a downward trend losing 3,2 percent to 133,12. Last week it was down by 2,27 percent. Despite the two week fall, the Mining Index still has a year to date gain of 74,61 percent.
This week also saw more funds being invested after more than $55,7 million was invested with 385,433,274 million shares changed hands. Last week approximately $24,3 million was invested after 44,5 million shares changed hands.
The current trades far outstrip the $4,6 million that was invested same week last year.
One of the week’s biggest trade was that of Barclays were 324,478,020 shares worth $8,6 million changed hands. A total 322, 998 026 shares were in relation to the FMB/Barclays deal. The 15 percent stake now belongs to employees (ESOT) as part of the deal. The deal sailed through under a negotiated deal at 2.64c with the closing price at 2.65c.
Meanwhile, Barclays’ new owners were coy on whether there will be management changes after the takeover. FMB’s group managing director Dheeraj Dikshit said: “We have just arrived, and we are studying them, but certainly as FMB we want to have our presence felt and management will have to basically work with us.”
“But broadly speaking I must say you have very good staff and there will be regional opportunities for some staff members but we will bring in personnel from outside for the integration,” said Dikshit
Mr Dikshit told the briefing that the group’s immediate focus will be to invest in core systems and integration.
“There is need to reconstruct the IT infrastructure but we will maintain current governance processes, which we think are already established. However, we will still have to invest between $6 to $7 million for local core systems and integration.”
Counters that supported the upward trend included FML up 46,43% to 20,5 cents. The group’s to buy a NicozDiamond has since been put on hold.
Nampak was the week’s second top riser up 38,46% to 18 cents. Nampak is one of Delta’s suppliers and might have received the company’s warning to suppliers to carefully manage their value chain and desist from the temptation to hike prices.
Simbisa was among the fallers down 2,5 percent to 68,25 cents. The Group is trading under a cautionary statement amid plans to list on the London Stock Exchange’s AIM market. The company is also in negotiations for the acquisition of an international complementary business.
Other fallers included Bindura which topped with a 23,08 percent loss to 5 cents. OK Zimbabwe was also weak after shedding 19,35 percent to 25 cents.
See tables on page 15

Share This:

Sponsored Links