ZSE Opens 2012 To Slow Start Compared To 2011

The Industrial Index slipped -1,13 percent to 143.08 points in trades dominated by losses with 15 counters in the red against two risers.

Trades remain thin with total turnover declining 2,4 percent to a paltry US$244 230 from 6,2 million shares.

With most institutional investors out of the market engrossed in 2011 performance reviews and putting together strategies for 2012, the ZSE has been relegated to investors seeking short term liquidity and has so far fared worse than 2011.

The low liquidity has been exacerbated by the low participation of foreign investors with inflows and outflows amounting US$11 043 and US$26 920, respectively.

The first two trading session for 2011 saw 25,5 million shares worth US$4,4 million as compared to 11,9 million shares worth US$495 000 that have traded over the past two days.

Tourism group, African Sun Limited reversed its previous gains easing -28,57 percent to 0,50c as banking group, CBZ Financial Holdings Limited which enjoyed a fine run in the last week of 2011 to peak at 14c, is now offered at 11c with bids at 10c amid reports of liquidity challenges in the financial sector.

Other counters which had risen dramatically in the run to 2011 year-end but have reverted to previous levels are AICO Limited  (-13,16 percent), ZimRe Holdings Limited (-8,33 percent), Dairibord Zimbabwe Holdings Limited (-5,26 percent) and Rainbow Tourism Group (-13,79 percent). Delta Corporation Limited and Econet Wireless Zimbabwe Holdings Limited were net sellers but remain stable at 70c and 400c, respectively.

Starafrica Corporation Limited and Innscor were the only stock to record gains putting on +11,1 percent and +0,26 percent to 1c and 54,25c, respectively.

A -14,29 percent loss on Rio Zimbabwe Limited to 30c saw the ZSE’s Mining Index ease -1,71 percent to 100.42 points.

RioZim was the only mining stock to record a trade as Hwange Colliery Company Limited closed buyers and sellers at 30c and 40c, respectively, while Falcon Gold Holdings Limited is strong buyer at 6c in the wake of its nine months results to  September.

It expects these results to be in the bottom line of US$1,8 million.