ZSE bearish

HARARE - The Zimbabwe Stock Exchange (ZSE)’s benchmark industrial index continued on a seven-day losing streak closing the week in the red at 204,12 points after retreating 1,54 percent.

On Friday, beverages maker Delta eased 5 cents to trade at 140 cents, while giant retailers Innscor  lost 1,50 cents to close at 75 cents and OK Zimbabwe retreated a further cent to trade at 20 cents.

Other losses were recorded in National Tyre Services which came off 0,50 cents to close at 2,50 cents and African Sun, which presented its year-end results on Thursday, went down 0,10 cents to trade at 2,60 cents.

The gains were in Econet which added 0,99 cents to close at 63 cents, FBC Holdings added 0,68 cents to trade at 10,70 cents and Willdale which doubled to 0,10 cents.

Week on week the industrial index lost 7,05 points (3,34 percent).

On Thursday, the industrial index fell by 0,47 percent to close at 207,32 points while the mining index declined to 42,87 points, a loss of 2,06 percent.

This was despite a special bargain done in Zimplow for just over 4,6 million shares at 3 cents.

There was a dramatic fall in the value of trades and consequently the main industrial index too on Wednesday.

The Industrial Index fell 0,31 percent in mid-week trade to close at 208,29 points, while the mining index fell by 1,82 percent to close at 43,77 points.

On Tuesday the industrial index took another hit falling 0,66 percent to close at 208,94 points, despite big volumes going through in Econet.

The market took another dive on Monday and there were no risers on the day, resulting in the industrial index easing 0,75 percent to close at 209,59 points, while the mining index fell 3,86 percent to close at 44,58 points.

The mining index lost 3,50 points (7,55 percent) compared to week ending 06 December 2013.

Most companies in the mining sector have found the going getting tough post dollarisation, with most failing to raise substantial capital to reboot their business, high debt has also become a thorn in the flesh.

Bindura was down five percent to 1,9 cents on Thursday despite its interims results which showed a return to profitability.

Market watchers attributed the negativity sentiments on the stock market to a delay in announcing the 2014 National Budget.

Experts assert that the market needs a lift from the national budget, especially with policies that would encourage investment in the country and addresses uncertainties on the empowerment laws in the wake of contrasting statements from various government departments.

Finance minister Patrick Chinamasa is expected to present the Budget in Parliament on Thursday, December 19.

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