This was after the Reserve Bank of Zimbabwe (RBZ) Governor, Dr Gideon Gono, said: “The reintroduction of reconstituted Zimbabwe Dollar alongside the Chinese Yuan is feasible and beneficial to the economy”.
The Ministry of Finance, however, still holds that the current currency regime is not expected to change in the near future until local capacity utilisation is restored and vibrant.
The ZSE’s Industrial Index was 0,90 percent lower at 140.22 points extending its Year-To-Date loss to 7,30 percent as the Mining Index slumped -3,21 percent to see its YTD loss ballooning to -59,41 percent with little prospects of breakeven this year.
Turnover improved to US$1,7 million from yesterday’s US$612 000 after 5,3 million shares exchanged hands dominated by trades in telecommunications giant Econet Wireless Zimbabwe Holdings Limited, SeedCo Limited and OK Zimbabwe Limited.
Econet was stable at 400c, SeedCo unchanged at 100c as 123 147 shares exchanged hands while OK saw 1,6 million shares trade at 9,50c in trades worth US$156 000.
Seventeen counters traded in the negative against five gainers.
AICO Limited eased -8,57 percent to a 52-week low of 16c as Old Mutual also eased -4,54 percent to a 52-week low of 105,01c. Banking giant, ABC was -7,5 percent lower at 75c on a sizeable parcel of 204 749 shares in trades worth US$153 661 as fellow banking giant CBZ Financial Holdings Limited eased -4,90 percent to 9,50c.
Banking stocks are in the spotlight as they face a possible downgrade in the quality of their profits as they are heavily exposed to distressed corporates who are failing to service their loan commitments.
Dairibord lost -1,08 percent to 18,3c on thin trades while Delta Corporation Limited and Innscor Corporation Limited eased -0,83 percent and 0,02 percent to 71,4c and 53,99c, respectively.
Small cap counters led the gains as ZimRe Property Invstments Limited added +10 percent to 1,1c, Truworths Limited put on +3,66 percent to 8,5c while Padenga Holdings Limited and Pelhams Limited added +1,89 percent and +1,19 percent to 5,4c and 0,85c, respectively.
A 3,33 percent recovery in Rio Zimbabwe Limited at 31c failed to offset losses in Bindura Nickel Corporation Limited and Hwange Colliery Company Limited, which saw the ZSE’s Mining Index slide -3,21 percent lower to 81.35 points.
Bindura was -20 percent lower at 3c after reporting a US$5,7 million loss for the full year to September.
The former nickel giant remains mainly under care and maintenance three years on with no concrete action plan as to when production might resume.
The group is in negative equity position of US$8,5 million due to accumulated losses since dollarisation.
Coal miner Hwange slipped -3,23 percent (-1c) to 30c on sizeable volume of 132 486 shares with bids at 28c.