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the previous week.
Stocks opened the week lower on Monday but recovered during the following two trading sessions before slumping into negative territory on Thursday.
Gains recorded on Friday, however, erased Thursday’s looses as the industrial index ended the week up 0,5 percent (0,73 points) at 163,29 points lifted by blue chip and mid tier shares. Rio Zim however dragged down the mining index amid reports that the diversified resource firm is struggling to repay loans in excess of US$50 million.
Week on week, minings were down 5 percent or 9,62 points at 109,65 points.
Weekly turnover declined to US$6,04 million from US$9,79 million in the previous week while the market capitalisation was slightly higher at US$4,18 billion from US$4,16 billion in the previous week.
Delta was the most liquid counter with total turnover of US$1,94 million followed by NMB at US$519 456, Aico at US$456 646, Innscor at US$386 202 and Econet at US$299 506.
After trades on Friday, Cafca gained US5c to US55c, Seed Co rose US3c to US138c and Meikles recovered US2c to close to US42c on reports the group has acquired the entire property portfolio of its former weaving and wet processing subsidiary Cotton Printers, which is under liquidation.
Meikles bought two Cotton Printers buildings in the Belmont industrial area of Bulawayo for an undisclosed sum after Cotton Printers was placed under liquidation in April last year to raise funds to pay debts.
Among the heavyweights, Barclays led with a US0,39c gain to US6c, and Innscor put on US0,1c to US61,1c. Delta failed to take off after posting a strong earnings for the full year to March.
It was unchanged at US82c.
The country’s largest beer and soft drinks maker is about to become Zimbabwe’s first billion dollar company by market capitalisation when it hits US84,6c a share.
Aico and OK Zimbabwe advanced US0,50c to US19,50c and US8,50c respectively. Chemco was the worst performer losing US25c to US10c in a US$34 trade.
Natfoods lost US2c to US98c. CBZ was down US0,50c to US17,40c while Hunyani and Star Africa lost US0,20c to US4,3c and US1c
RioZim lost US5c to US140c. According to reports, RioZim has failed to settle loans amounting to US$50 million forcing the financial institutions to rollover the loans. Trust Bank advanced US$3,4 million (239 percent exposure to the bank’s December loan book) to RioZim.
Tetrad also advanced a series of loan facilities amounting to US$4,8 million (15 percent exposure). Kingdom Bank has the highest exposure in terms of value of US$7,5 million to RioZim (9 percent of their December loan book). ZB Bank US$5,9 million, Premier Bank US$2,4 million, BancABC US$3 million, IDBZ US$2,3 million, Metropolitan Bank US$1,3 million, Imara Corporate Finance US$1,5 million, Africa Import and Export Bank is owed US$8 million and Renaissance Merchant Bank US$2,9 million.
Last week, Finance Minister Tendai Biti suspended Afre and RTG from trading on the stock market on concerns of irregular inter-company share deals. In suspending Afre and RTG, the finance minister said he had noted with concern notices from the two firms advising on issues that potentially breach sections of the Securities Act.
Minister Biti also directed the Commissioner of Insurance to carry out investigations at Afre subsidiaries, namely First Mutual Life, FMRE, Tristar and Pearl Properties (Private) Limited in the wake of suspected irregular inter-company transactions at Afre and RTG. He wanted to reverse the suspension last week but the Securities Commission raised the flag as full investigations have to be conducted.
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