By end of trading Wednesday, the key industrial index had gained 0,6 percent to 99,56 from a week earlier. The index however, remained below the 100 point mark, the level to which it was rebased in 2009.
SUBDUED trading continued on the Zimbabwe Stock Exchange last week despite the onset of the earnings reporting season.
By end of trading Wednesday, the key industrial index had gained 0,6 percent to 99,56 from a week earlier.
The index however, remained below the 100 point mark, the level to which it was rebased in 2009.
Year-to-date, industrials have tumbled 13,8 percent, as investors continue to offload their shares.
Since January, the total market capitalisation on the ZSE has dropped more than three percent to US$2,68 billion. The mining index has remained stuck at 19,14 points.
Minings are down by more than 19 percent since January 2016.
The World Bank expects global metal prices to further drop between 10 percent and 20 percent in 2016.
More than 10 listed companies have realised their financials since January.
Notably, banks continue to post strong results after the Reserve Bank of Zimbabwe inherited toxic assets worth US$350 million from the sector through the Zimbabwe Asset Management Company.
Barclays Bank Zimbabwe Ltd’s stock fell three percent to USc3,2 after reporting that net income for the full-year ended December 31, 2015 plunged 40 percent to US$3,9 million from US$6,9 million a year earlier.
Its price dropped further after parent company, Barclays private limited company, announced plans to sell its stake in the local unit over the next three years.
On Wednesday, Barclays’ stock closed at USc3.
CBZ Holdings Ltd fell 4,5 percent to USc10,5. The financial group said net income climbed 5,8 percent to US$35,2 million last year from US$33 million in 2014.
Truworths did not trade, but was offered higher at USc0,08 after the clothing retailer reported an improved performance for the half-year ended January 31, 2016.
The company’s revenue improved 6,6 percent to US$12,2 million and profit rose to US$330 000 from US$50 000 in the comparable period a year ago.
Blue-chip counter Delta Beverages performed relatively well in the week as it gained in three trading days since Monday.
By the end of day Wednesday, it closed trading at USc56,50 after 696 987 shares worth US$390 000 changed hands.
Tobacco giant BAT recovered 1,3 percent to close at US$11,11 after 6 128 shares were traded.
Analysts expect the pressure on stocks to persist throughout 2016.
But commodity stocks are forecasted to remain in the red, as demand for base metals in China — the world’s largest consumer of metals — slows further.
“Other catalysts to the fall in metal prices were ongoing supply increases as well as still-high stocks for a number of metals,” said stockbrokers IH Securities.
Metal prices are projected to decline by another 10 percent in 2016 due to slowing demand in emerging market economies, especially China and increases in new production capacity.
Iron ore prices are expected to drop 25 percent while nickel and copper will be down 16 percent and 19 percent respectively.
On the economic front, the IMF reportedly expressed confidence that Zimbabwe would meet targets under its staff monitored programme, but raised concerns on the growing internal debt as Government strives to meet its obligations.
3,504 total views, 1 views today