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The market ended mixed, with more counters closing higher as winners slightly edged losers with a five-two advantage. However, trading remained relatively subdued as there were no trades in the majority of counters largely due to the de-materialisation process currently underway and the eroding investor confidence with the local market. The number of trades since the start of de-materialisation has been averaging below 40. Yesterday’s total trades were at 35. Total turnover was at $5,27 million with foreign buys at $2,8 million while there were more sellers at $3,76 million. Innscor got the bulk of the inflow funds at $1,83 million.

The Industrial Index gained 1,22 percent or 2,07 points to finish the day at 172,44. Heavyweight counter Delta was the main driver as 528 093 shares traded hands. Delta was up 2,7 percent to close at 113 cents as the counter reversed last week losses. Another heavyweight, Seed Co, gained 2,1 percent to close at 97 cents as the counter edges close to the 100 cents psychological barrier.

The heavily indebted company is setting itself up for Limagrain to exercise its option that will see the business retiring the bulk of its debt.

The option, if exercised at the strike price, will be at a premium valuing the company upwards of $224 million. Most analysts, however, believe that when the company and Limagrain consummated the transaction they had hoped that by this time Seed Co would have been valued way above the strike price, which would have meant Limagrain would have exercised the option at a discount.

“It seems their forecast numbers on valuation were wrong.”

Pearl, the properties unit of First Mutual, was up 18,2 percent to close at 2,60 cents, while struggling finance group ZBFH was up 3,7 percent to close at 3,11 cents. The group, which is still under US sanctions, has been struggling to raise capital over the last 12 months. Hotel operator RTG was up 12,5 percent to close at 1,40 cents.

Losers were led by crocodile farming group Padenga, which lost 8 percent to close at 9,20 cents. The group, which has been on a roll, seems to have hit some form of resistance as the counter seems to be heading lower in the near term.

Padenga saw 1,1 million shares trading hands leading the market in terms of overall volumes traded. First Mutual lost 0,2 percent to close at 4 cents. The Mining Index remained dogged by bearish sentiments with no trades yesterday. The index was flat at 64,19. The bearish sentiments continue to affect the stock market and with a lot of bond issues this month – BNC and IDBZ come to mind – the equities market is set to continue with its relative decline going forward.

There is just too little capital versus the many investing opportunities, and with analysts expecting Treasury to raise more bonds to finance its bonus payouts; the situation is likely to get worse. What has made equities seem unattractive besides the politics is also the disappointing earnings! – Wires.