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Enacy  Mapakame Bulls & Bears —
THE stock market has been largely subdued during the first 18 days of the year except for some random activity in selected stocks.

Since the beginning of the year, the mainstream Industrials Index has gained a marginal 0,68 percent while the resources Index has maintained year opening levels of 58,51 on subdued activity.

In the last five trading days, the Industrials Index eased a marginal 0,11 percent to 145,96 weighed down by losses in heavy caps.

Total market capitalisation dropped a marginal 0,004 percent to $4,048 billion. However, total turnover for the five days under review improved 33 percent to $2,640 million following exchange of 10,897 million shares.

Foreign sales dominated trades as foreign investors exit the local bourse on economic uncertainties.

However, this week, Finance and Economic Development Minister Chinamasa reaffirmed Government’s commitment to come up with measures that make Zimbabwe an attractive investment destination for both domestic and foreign investors.

He said Government was prepared to amend investment laws to increase the flow of money into the country.

In the past five trading sessions, Delta closed 0,54 percent weaker to 91,50 cents. The stock, which is the biggest company by market capitalisation remains one of the biggest value drivers.

Delta this week reported a 10 percent revenue decline for the quarter to December 31, 2016 on a slowdown in lager volumes despite the quarter coinciding with the festive season, which is usually its peak season.

But operations were affected by the unavailability of water at some of its depots as well as grey imports, which are usually priced cheaper.

Equities analysts are of the view the revenue declines will continue putting pressure on the beverages giant’s margins at full year. At half year, margins were down from 18,21 percent to 17,93 percent and forecast to further decline at full year.

The stock is also currently trading under a cautionary following an announcement by Coca Cola Company of its intentions to terminate a bottler’s agreement last year.

On the telecoms side, Econet dropped a marginal 0,20 percent to 30 cents in trades on Tuesday. The declines came in the aftermath of the telecoms giant’s announcement of a proposed rights issue to raise $130 million dollars to service its foreign financial obligations.

According to a circular by Econet, the rights issue shares will be priced at 5 cents a share on the basis of 82 ordinary shares for every 100 shares already held along with an equivalent number of debentures.

The mobile operator has been making headlines following astronomic increases in data charges, a decision that was later reversed.

Also on the losing side, Colcom eased a marginal 0,1 percent 35 cents after announcing changes to its management structure.

The meat processor announced the appointment of David Long as its new independent non-executive chairman following the resignation of non executive director and board chairman Mr John Koumides, as well as the appointment of Mandy Mutiro as the substantive financial director.

Barclays eased 4 percent to 3 cents in the period under review. Fellow banking group CBZ Holdings fluctuated between 10,50 cents and 11 cents. Week on week, the stock however lost 2 percent of value to settle at 10,50 cents.

Hotel and hospitality group Meikles closed 0,42 percent weaker to 11,9 cents while diversified industrial conglomerate Innscor eased 0,10 percent to 48 cents.

Dairibord Zimbabwe closed flat at 5 cents. On a year to date basis, the milk processor has lost 16 percent of value.

But the stock is tipped to improve its earnings on this year on enhanced production as well as anticipated increase in raw milk production in the country.

Latest figures shows a 14 percent increase in annual milk production in 2016, beating the Zimbabwe Dairy Industry Trust’s forecasts of an 8 percent increase. On average, the country produced 5,5 million litres of milk a month against a national requirement of 9 million litres.

Annual milk production is anticipated to hit 100 million litres per annum by 2019, leveraging on increased national herd under the dairy revitalisation programme.

Further losses were however offset by gains in Lafarge which rose 20 percent to 48 cents while insurance group, Old Mutual which inched up a marginal 0,07 percent to $3,5025.

Diversified media group Zimpapers rose 14 percent to 0,8 cents. Year to date, the group is 40 percent firmer.

The duo of insurance firms, First Mutual and Fidelity both remained unchanged at 4,5 cents and 11 cents respectively.

Market watchers anticipate the subdued sentiment to prevail throughout January as investors await indications for economic direction as well as beginning of the earnings seasons