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Business Reporter
THE Zimbabwe Stock Exchange benchmark index declined yesterday on the back of widespread losses across the board, while the mining index was stagnant as all resource stocks traded unchanged.
The value of trades fell to US$1,06 million from US$1,70 million achieved on Monday.
Hippo Valley led the decline as the industrial index lost 1 percent or 1,58 points. The sugar cane grower and processor significantly declined 20 percent or US20c to US120c.
Dairiboard lost US0,50c to US8c ahead of its full-year earnings report today.
Some marginal losses also came from Barclays and ZBFH, which were down US0, 50c each at US7c and US7c respectively.
Only four counters traded in the positive territory. . . Seed Co advanced US0,91c to US126c, NTS rose 0,40c to US3,40c.
Apex added US0,11c to US0,31c and Cairns was up US0,05c at US1,80c.
Zimplow, the manufacturer and exporter of ploughs and agricultural implements, posted a 36 percent increase in revenue to US$12,3 million full-year revenue to December 2010.
The sales were below management
guidance but in line with analysts’ expectations.
Domestic sales rose by 53 percent to US$8,6 million while exports advanced by only 6,8 percent to US$3,6million.
In markets such as Tanzania, implements are sold at break-even prices because of stiff competition. However, the company wants to maintain its export markets despite low margins, as a long-term source of foreign currency.
EBITDA margins decreased by 8 percentage points to 25 percent due to increases in steel and coal prices as well as high labour costs.
Operating income, which management had forecast to grow by 18 percent to US$3,3 million was flat at US$2,8 million.
Margins are likely to remain under pressure because of competition from the Far East, especially China and India.
Its stock price was unchanged at US6c.
Cafca, the manufacturer of copper cables and overhead aluminum conductors, saw full-year revenue rise to US$16,36 million, 124 percent ahead US$7,28 million made in the previous period, due to strong copper and aluminum prices
Profit for the year stood at US$1,16 million, up from US$431 809 in the previous period.
Cafca said it had cleared all debts by the year but would revert to borrowings to finance working capital as activity improves.
The company anticipates growth in volumes and profits this year.
Its share price was unchanged at US30c.