Zimbabwe Stock Exchange main index falls by 3.5 percent in February

The Zimbabwe stock exchange mainstream index eased 3.52 percent in February to close at 135.31 points as eight of the top 10 counters by market capitalisation all recorded losses.

The mining index advanced 0.28 percent to close at 57.31 points on the back of the gains in RioZim and Falgold.

RioZim has bought Falcon Gold’s Dalny Mine, a deal which will double its asset value and increase gold output by 100 kilogrammes per month by next year.

For Falgold, the deal would raise working capital to renovate the group’s infrastructure and increase production at its remaining operations at Turk Mine near Bulawayo and the Golden Quarry Mine in Shurugwi.

Market capitalisation dropped 3.42 percent, from $3.9 billion in the previous month to $3.77 billion, mirroring the fall in the mainstream index.

However, total market turnover increased by 28.27 percent to $10.97 million.

Analysts say the increase in total market turnover was driven by institutional investors who continue to seek protection in equities as a better alternative than exposure in the unpredictable money markets

The largest counter by market capitalisation, Delta lost 7.79 percent to close at 82 cents while the second largest company, BAT eased 1.31 percent to close at 1 505 cents.

Other heavyweights to fall included Seedco, Innscor and Old Mutual which eased 5.94 percent, 2.27 percent and 1.71 percent to settle at 95 cents, 46.9 cents and 344.75 cents in that order.

OK Zimbabwe and Simbisa also shed 1.13 percent and 1.52 percent to trade at 7 cents and 16.65 cents respectively.

NTS, Barclays and Edgars also lost 12.17 percent, 10.17 percent and 10.42 percent in that order.

Additionally, Meikles and Pearl eased 5.71 percent and 1.73 percent respectively.

Partially offsetting the loss in the mainstream index were the gains in two heavy weights National Foods and Padenga after advancing 0.71 percent and 1.61 percent.

Among the top gainers were Proplastics, ZB Financial Holdings and Nampak after adding 19 percent, 15.1 percent and 11.57 percent to settle at 5 cents, 6.4 cents and 2.7 cents in that order.

PPC and TSL advanced 7.14 percent and 5.56 percent respectively while Colcom and CFI put on 4.29 percent and 2.93 percent respectively.

Hippo also added 2.74 percent to close at 37.5 cents.

On the mining space, Riozim and Falgold added 1.4 percent and 66.7 percent to settle at 32.7 cents and 1 cent , offsetting a 1.7 percent decline recorded by Bindura which closed at 3.44 cents. Hwange remained unchanged at three cents.

Foreigners remained net sellers in the month, disposing of shares worth $5.52 million and buying shares worth $1.69 million.- The Source

(24 VIEWS)