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as the anticipated revenue inflows failed to materialise.
While turnover for the first quarter was 14,5 percent ahead of US$101,6 million realised during the same quarter in 2010, some market analysts had projected much better inflows.
More than two thirds of US$116,4 million realised during the quarter was concentrated in only five counters.
Econet had the highest turnover at US$23,5 million, followed by Delta at US$18 million, ABCH at US$13,5 million while Meikles and Innscor came in at US$10 million and US$7 million respectively.
The bulk of the counters were struggling with volumes sharply lower across the board during the quarter under review.
In the three months to March 31 2010 this year, the industrial index gained 5,6 percent while the mining index rose 17,8 percent.
Well-capitalised stocks, with the support of the offshore funds, were the major drivers of the key industrial index.
Trading volumes on the ZSE have been largely affected by liquidity challenges and developments on the country’s political front.
The political environment remains the key to unlocking investments.
As long as the country continues to be rated as an unfavourable investment destination, investor confidence will remain low.
Weekly equities review
On Friday last week, the industrial index lost 0,34 percent to close at 160,65 points as mostly heavyweight counters lost ground. The cement maker PPC dropped US4c to US320c and TA lost US2,01c to US10,99c after reporting a loss of US$5,4 million.
Delta and Innscor retreated US2c each to US70c and US63c.
Econet and Meikles came off a cent each to US489c and US47c. On the upside, Lafarge added US15c to US105c and Radar rose US5c higher at US40c. Cafca rose US3c to US45c while M&R gained US2c to US20c.
CBZ gained US1,5c to US18,5c after reporting US$17,6 million profit.
The mining index was down 0,31 percent to 237,18 points after Bindura dropped US0,50c to US10c. Mwana Africa, the parent company of Bindura said the company was not considering equity fundraising, contrary to recent media reports.
It said the company will continue to consider a number of options to finance the restart of production at BNC, including debt, and will update shareholders in due course.
The planned restart of production at BNC’s Trojan mine, which requires funding, follows the completion of a Competent Person’s Report by SRK Consulting, and, the signature of an off-take agreement with Glencore International AG whereby Glencore will purchase all the concentrate produced by BNC, as previously announced. BNC’s assets remain on a care and maintenance programme.
Production at the Freda Rebecca Gold Mine has been progressing well.
The average monthly productions achieved for the three and six month periods to March 31 2011 are 2 858 ounces and 2 720 ounces respectively.
For the financial year to date, Freda Rebecca produced 27, 211 ounces of gold, with 3,573 ounces of gold produced in the month of March 2011.
The Phase II expansion to a targeted production rate of 50 000 ounces per year continues to progress with the second milling circuit expected to be commissioned in next months. The Phase II expansion is fully funded.