News / National
Zim Mining stocks rally on Hwange gains
29 Dec 2011 at 23:44hrs | Views
On Thursday mining stocks rallied 23,89 percent on gains in Hwange, driving the resource index to 100,70 points.
Hwange was the lone gainer among four trading counters after advancing US10c to close at US40c as Bindura, Falgold and RioZim were unchanged at previous levels of US2c, US6c and US35c respectively.
At 100,70 points, the mining index has reduced its year-to-date loss to 35,55 percent making it the worst performing index in Africa.
The resources index had been the hardest hit on the market as apart from the liquidity crunch the very operational fundamentals of the four mining houses.
With the exception of Falgold, companies have been plagued by unremitting recapitalisation issues that have seen continued boardroom battles between shareholders and management, with the ultimate sufferer the operational integrity of the entities.
The mainstream index was also in the positive territory, gaining 1,76 percent to close at 142,90 helped by gains in heavyweight counters mainly Hippo with a US9c increase at US109c as Econet recovered US5,01c to close at US400c.
With several counters among the listed 76 counters trading at their 52-week lows, the industrial index is now 5,4 percent down year-to-date with only one trading session to go in the year.
A total of 14 170 204 shares valued at US$1,2 million changed hands on the market with one trading session left for the year.
Other gains were in Aico Africa, which added US2,40c to trade at US16c while CBZ and ZBFH both traded US2c higher at US13c and US18c respectively.
On the previous day, Aico was bid and offers at 13,6c and 15c with no trades going through after reports that the group is in negotiation with Olam International for the sale of an equity stake to the latter as the group seeks to restructure its highly leveraged balance sheet.
Losses for the day were hotel group Meikles and TA, which traded a cent lower at US16c and US12c. Colcom was US0,50c softer at US37c with financial counter Barclays and cement manufacturer, PPC down US0,10c each at US4,30c and US210c.
The market had opened the short week in positive trading in a last-minute bid to narrow year-to-date losses as the curtain comes down for the year 2011.
A few dramatic price movements were expected over the last trading sessions in year-end valuation adjustments and they were witnesses yesterday as Econet and Hwange put up a good show.
The market is expected to close the year trading in the positive as evidence by the rally that characterised the past three trading sessions.
Turnover on Wednesday, which was the first day of trading this week, was US$700 285, which was a vast improvement from Friday's US$215 000.
Hwange was the lone gainer among four trading counters after advancing US10c to close at US40c as Bindura, Falgold and RioZim were unchanged at previous levels of US2c, US6c and US35c respectively.
At 100,70 points, the mining index has reduced its year-to-date loss to 35,55 percent making it the worst performing index in Africa.
The resources index had been the hardest hit on the market as apart from the liquidity crunch the very operational fundamentals of the four mining houses.
With the exception of Falgold, companies have been plagued by unremitting recapitalisation issues that have seen continued boardroom battles between shareholders and management, with the ultimate sufferer the operational integrity of the entities.
The mainstream index was also in the positive territory, gaining 1,76 percent to close at 142,90 helped by gains in heavyweight counters mainly Hippo with a US9c increase at US109c as Econet recovered US5,01c to close at US400c.
With several counters among the listed 76 counters trading at their 52-week lows, the industrial index is now 5,4 percent down year-to-date with only one trading session to go in the year.
A total of 14 170 204 shares valued at US$1,2 million changed hands on the market with one trading session left for the year.
Other gains were in Aico Africa, which added US2,40c to trade at US16c while CBZ and ZBFH both traded US2c higher at US13c and US18c respectively.
On the previous day, Aico was bid and offers at 13,6c and 15c with no trades going through after reports that the group is in negotiation with Olam International for the sale of an equity stake to the latter as the group seeks to restructure its highly leveraged balance sheet.
Losses for the day were hotel group Meikles and TA, which traded a cent lower at US16c and US12c. Colcom was US0,50c softer at US37c with financial counter Barclays and cement manufacturer, PPC down US0,10c each at US4,30c and US210c.
The market had opened the short week in positive trading in a last-minute bid to narrow year-to-date losses as the curtain comes down for the year 2011.
A few dramatic price movements were expected over the last trading sessions in year-end valuation adjustments and they were witnesses yesterday as Econet and Hwange put up a good show.
The market is expected to close the year trading in the positive as evidence by the rally that characterised the past three trading sessions.
Turnover on Wednesday, which was the first day of trading this week, was US$700 285, which was a vast improvement from Friday's US$215 000.
Source - New Ziana
