ZSE closes year in negative territory

ZSE closes year in negative territory ZSE

ZSEBusiness Reporter
THE Zimbabwe Stock Exchange indices closed the year in the negative territory, with both industrials and minings recording significant annual losses. The Industrials Index slumped 29,45 percent while the Minings Index was down 66,92 percent on the year, its second successive slump.

Yesterday, the final session of the year saw similar performances as the Industrials slipped 0,2 percent to 114.85 while the mining index fell 0,94 percent at 23.70.

“With the challenges in 2015 increasingly likely to carry on into the New Year, the outlook for the Zimbabwe Stock Exchange remains hazy,” EFE Securities said in a note yesterday.

The losses on the stock exchange accelerated in the second half as investors exited emerging markets following persistent weaknesses in commodities. As a result annual turnover fell to less than $230 million.

Yesterday’s losses were on the back of declines in DZHL, which fell 12,2 percent to 6,5c while meat processor Colcom fell 5 percent to 17c. Beverages maker, Delta Corp declined 0,7 percent to 70,5c.

Offsetting the losses gains in starafricacopration, which advanced 100 percent to 0,006c after the company announced it expects to complete integration of its sugar refinery, Oldster Sugar Harare, in the next three months to double daily capacity to 600 tonnes.

It said significant progress has been made on the plant upgrade project at Goldstar Sugar Harare and the company was looking for funds to complete integration of the plant.

starafrica said pending commissioning of the integrated plant, the factory can be operated viably at 300 tonnes per day, enough to meet demand from retail and industrial consumers.

In the six months to September 2015, Goldstar produced just over 5 000 tonnes of refined sugar compared with 376 tonnes produced in 2014. Sales were negatively impacted by low production volumes as the plant operated for only three months due to low off take and Padenga surged 7,38 percent to 7,73c.

The market capped the year with a thinly traded session in which 11 stocks were active distributed into four risers, five fallers and two trading stable.

The active stocks yielded $62 703 in value of trades which was down 59,39 percent from the previous trading session as volumes closed at 2,075 million.

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