Industrials Rebound On Improved Liquidity As Minings Falter

Industrials put on +0,31 percent and closed the day at 160.63 points as local players provided the much needed liquidity on the bourse.

Improved activity across the market saw a total volume of shares traded more than double to 18,1 million and with it the value traded surged 61 percent to US$1,4 million.

Sticking issues related to the indigenisation and empowerment regulations coupled with the uncertainty in global markets have seemingly taken the sting out of the foreign players as they have turned net sellers in recent weeks starving the market of fresh investments.

Improved activity saw the active stocks count close at 43 compared to the five-day average of 33 stocks, while of the actives price movements were seen in 22 companies with risers dominating at 12 stocks and the rest being fallers.

Driving the industrials resurgence were gains in AICO Limited, ABC Financial Holdings Limited and Innscor Corporation Limited.

Regional financial services group ABCH got the market’s cheer on the recent solid financial performance to surge 13 percent by close of call at a new high of 85c with buyers firmly indicating an insatiable appetite as the counter closed bid at 85c with no sellers in sight.

Food and Manufacturing Consumer Group conglomerate Innscor traded +1,56 percent firmer at 65c as the full year results to June trading heats up. AICO, whose steady price recovery was partially hampered by the emerging liquidity challenges, put on +1,18 percent to close at 25,8c.

Other notable gains were seen in Truworths Limited up +6,16 percent at 10c and ZPI Limited that saw resurgent demand drive it up +7,14 percent to 1,5c. Among the counters to trade in the negative was Life assurer Fidelity Limited that continued to lose their glitter shedding 8 percent to trade at 12c while African Sun Limited sank to a new all time low of 0,7c.

The resources index faltered on new fears of the indigenisation and empowerment regulations retreating -0,12 percent to 160.37 points on the back of a -0,17 percent loss in coal miners Hwange Colliery Company Limited (HCCL) that closed trading at 60c.