HomeBusiness DigestHwange gains buoy resources index

Hwange gains buoy resources index

GAINS in mining giant, Hwange Colliery Ltd, buoyed the resources index to a seven-month high this week.

The gains saw the resources index reaching the 200-point mark on Wednesday while the market capitalisation came close US$4 billion.
The mining index added 1,97 points (1,05%) to close at 190,28 points mainly due to Hwange which rose 1,80 cents to close at 44,80 cents.
Bindura and Falgold remained unchanged at 13 cents and eight cents while RioZim lost five cents to trade at 215 cents.
The mainstream industrial index on the same day came off 1,03 points (0,70%) to close at 146,00 points. TA shed three cents to close at 27 cents and Innscor retreated two cents to 53 cents.
Ok Zimbabwe and Old Mutual were down a cent each at 10 cents and 160 cents respectively and African Sun shed 0,10 cents and settled at 2,90 cents.
Murray & Roberts and Meikles pushed up a cent each to trade at 20 cents and 47 cents.
Cafca and ZBFH both ended up 0,50 cents to trade at 13,50 cents and eight cents respectively whilst PPC gained 0,40 cents to close at 320,50 cents.
Foreign investors maintained the bull run on both indexes, contributing more than 50% of the total sales of shares on the ZSE this month.
Trades from offshore investors contributed 40% of the turnover in September. Of the US$23,5 million turnover realised for the month of September, foreign trades accounted for US$$9,3 million.
However, the figure was on the downside from US$19,3 million realised in August from total turnover of US$35,8 million.
This constitutes 54% of total sales and shows that foreign investors’ interest on the local bourse is improving. On Tuesday, the industrial index recovered 1,47 points (1,01%) to close at 147,47 points as gains dominated the day’s session.
Lafarge topped the movers with a 12 cents increase to 112 cents as Natfood added 5,05 cents to settle at 90,05 cents and Murray and Roberts pushed up two cents to trade at 22 cents.
Seed Co was 1,44 cents higher at 98 cents with Colcom and Innscor up a cent at 36,50 cents and 54 cents.
On the downside, Star Africa shed 0,50 cents to seven cents whilst Aico Africa, Cairns and ZHL lost 0,10 cents to end at 22,90 cents, 2,10 cents and 1,70 cents respectively.
Tuesday saw the mining index continuing its positive run up 5,29 points (2,78%) to close at 195,57 points largely due to Bindura which gained 0,60 cents to close at 13.60 cents.
Hwange was bid higher at 47 cents with Falgold and RioZimM unchanged at eight cents and 215 cents respectively.
Daily average turnover during the week was above US$1 million as investors maintained their confidence in mining firms and blue-chip counters where the bulk of the money went into companies such as Hwange, Bindura and Econet.
On Wednesday, the industrial index rallied 2,73 points (1,85%) to end at 150,20 points in largely positive trading. Pretoria Portland Cement Company moved up 14 cents to 335 cents whilst Econet added 10 cents to close at 510 cents.
Delta advanced three cents to trade at 58 cents, Natfoods went up 2,25 cents to 92,30 cents and Meikles was a cent higher at 48 cents Five counters traded in the negative territory as Radar gave up two cents to close at 18 cents with CAFCA down 0,50 cents at 13 cents. PGI eased 0,25 cents to settle at 2,50 cents whilst FBCH and Gulliver shed 0,10 cents to close at 2,60 cents and 0,15 cents.
The mining index reached the 200 point mark on Wednesday to 205,70 points after gaining a significant 10,13 points (5,18%).


Paul Nyakazeya

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