Market Closes In Red As Buyers Lack Impetus

The Mining Index closed the week -1,45 percent softer at a new low of 119.64 points.

The week witnessed a total of 138 930 137 shares being traded across the board yielding a total value of US$15,4 million boosted by a special bargain in Tobacco Sales Limited (TSL) where a 29 percent (102,8 million shares) stake in the group exchanged hands at a price of 11c in a trade worth US$11,3 million while in normal trades only US$4,1 million worth of trades went through the market representing a 13 percent decline from last week.

The TSL deal saw TSL major shareholders Closefin Investments (Private) Limited, a consortium of local businessmen, consolidate their hold on the company as they shored up their stake to 58,8 percent in the
diversified group.

In normal trades market heavyweights Econet Wireless Zimbabwe Holdings Limited (Econet), Innscor Corporation Limited (Innscor) and Delta corporation Limited (Delta) reaffirmed their most liquid stocks status
as the portions attributed to them of total turnover stood at 7,14 percent, 3,08 percent and 2,65 percent, respectively.

Also recording notable trades was retail group OK Zimbabwe Limited (OK) that saw a US$415 523,12 worth of trades going through the market for the week as traders took positions in the group ahead of its
interim results presentation scheduled for later today.

Manufacturing group Phoenix Holdings Limited (Phoenix) sank to their 52 week low of 1,5c losing 28,57 percent to lead the 26 fallers for the week while Plate Glass Industries Limited (PGI) followed
retreating 24 percent to 1,9c in the wake of news that the group has reduced their shareholding in former subsidiary Mutare Board a Door (MBD) to 28,7 percent

MBD’s operations were strained by lack of capital which the parent PGI was not able to avail prompting the later to sell their shareholding to new financiers.

The market took little notice of the reported civil servant bonuses expected to likely boost retail sector coffers as the apparel retail group Truworths Limited (Truworths) found themselves 18,6 percent
softer at 7c by close of call on Friday.

The delayed recapitalisation at Olivine Industries Limited coupled with the high finance costs on the ever-growing AICO Limited (AICO) borrowings continued to haunt the agro-industrial conglomerate as the market discounted them 12,5 percent for the week and saw them close trading at 17,5c.

Several market heavy weights weighed on the market notable among them were Innscor and Delta that shed -2,95 percent and -2,88 percent to 72,79c and 55c, respectively.

SeedCo Limited (SeedCo) dropped -2,73 percent to 107c as the market rerate the group in the post results period while CBZ Financial Holdings Limited (CBZ)  succumbed to selling pressure shedding -7,69
percent to 12c.

Mitigating the market losses were gains in Hippo Valley Estates Limited (Hippo) that put on +16,67 percent to 105c as the market welcomed the solid interim performance from the agro-industrial
concern.

The sugar producing giant Hippo released interim results reflecting a +79,5 percen surge in interim turnover to US$70 million,a +78,3 percent rise in PAT to US$13.,1 million and interim Earnings Per Share
(EPS) of 7,1c.

Telecommunications giant Econet put on +1,35 percent to 375c as demand reemerges in the group while British American Tobacco (Zimbabwe)
Limited (BAT) was +1,25 percent firmer at 162c.

Pelhams Limited (Pelhams) closed the week 10 percent firmer at 0,66c as the shareholder wrangle following the disposal of a 35 percentstake continues in court.

Financial services group ABC Financial Holdings Limited (ABCH) rose +7,69 percent to 70c also on resurgent demand.

RioZimbabwe Limited (RioZim) saw their price close the week -7,69 percent softer at 45c the group’s target rights issue price.

The mining giant is set to hold an Extraordinary General Meeting (EGM) at which the directors will seek shareholder approval of recapitalisation plan involving a rights issue and debt to equity
swap.
A total of 66,7 million new rights shares are expected to be issued in a ratio of 22,24 new shares for every 10 shares held and while debt valued at US$29 million is expected to be swapped for 43,9 million
equity shares at a conversion price of 66c.

Bindura Nickel Corporation Limited (Bindura), whose operations have remained largely under care and maintenance since 2008, continues to feel the heat on the market shedding 0,20 percent to 5c while Falcon
Gold Holdings Limited (Falgold) and Hwange Collery Company Limited (HCCL) were stable at 7c and 45c, respectively.