eBusiness Weekly
The Zimbabwe Stock Exchange benchmark Industrials Index closed the week 4,22 percent softer due to losses in most heavyweights with Seed Co and Econet both falling by more than 14 percent over the week. Barclays, Innscor, BAT and Delta also declined over the week on low value trades.
The Industrials Index closed down points at 318,43, while the Minings index nudged 1,11 points higher to 141,47. volume soared to 340 955 725 shares from 15 954 733 due to several large trades conducted by NSSA in NicozDiamond, OK Zimbabwe and FMP.
The largest deal of the week on Tuesday saw ZHL selling its 30 percent stake in NicozDiamond to NSSA for $7,033 million. The sale resulted in the exchange of 177,2 million shares at 3.97 cents a share and lifted the short term insurer off its position as the worst performer in the year.
Yesterday, NSSA sold 40,16 million OK Zimbabwe shares for $8,032 million — possibly to fund the deal — while FML bought 111 065 218 FMP shares for $6,331 million as part of the continued realignment of insurance and property portfolios between the two groups.
The Old Mutual Implied Rate fell to $1,5171, its lowest level since late August, but this was due to a 10 percent rise in the price on the London Stock Exchange following the sale of its UK wealth business, run by veteran fund manager Richard Buxton, to private equity firm TA Associates for £600 million. Old Mutual closed the week unchanged at 450 cents with 48 trades valued at $1,480 million taking place over the week.
Bindura was the second most active counter in the week, racking up 44 trades worth $288,788 in the wake of its interim results announced a fortnight back.
Art shares failed to trade in the week after the group reported a 43,1 percent rise in attributable profit in the year to September 2017.
All divisions reported an operating profit in the year, with the battery division driving the underlying result as it continued to draw benefit from SI20 of 2016. EPS amounted to 0,58 cents a share, putting the company on a PE of 12 at its last closing price of 6,98 cents.
Four companies increased their shares in issue over the week as a result of share options schemes: Delta issued 1,311 million shares, taking its total shares in issue to 1,259 billion, Edgars added 478,400 to 294,5 million, OK’s issued capital rose 1,638 million to 1,193 billion, while Seed Co listed another 35 400 taking it to 240,7 million. A debt to equity conversion of 11,95 million shares at Star Africa took its total shares in issue to 530,4 million.
The market capitalisation fell over the week to $9,158 billion from $9,518 billion.
