Econet shares fall 33pct to drag Zim stocks lower

Econet shares fall 33pct to drag Zim stocks lower

HARARE, January 28 (The Source) – The stock market fell by 2,67 percent to close the week at 141,14 points on the back of the losses in heavyweights led by Econet which dropped a third of its valuation in the week.

The telecoms giant retreated to 8 cents as investors continue to shun the company over its controversial planned $130 million capital raise.The largest counter by market capitalisation, Delta, lost 1,64 percent to close at 90 cents while National Foods eased 2,85 percent to settle at 350 cents in the week under review.

Meikles also shed 11,39 percent to close at 10,5 cents.

ZB Financial holdings commanded the gainers pack in the week after picking up 23 percent to settle at 5,56 cents.

Zimplow and Masimba also gained 10 percent and 5,56 percent to close at 3,3 cents and 1,9 cent respectively. Additionally, Padenga and CFI advanced 2,8 percent and 2,5 percent respectively.

Old Mutual was flat at 351 cents in the week under review.

Market capitalisation fell by 2,55 percent to close at $3,915 billion, reflecting the negative change in the mainstream index. Additionally, total market turnover declined by 30 percent to $1,55 million with average daily trades of $310,152 in the week under review.

The resources index advanced 2,86 percent to settle at 56,12 points on Riozim after it advanced on the back of gain recorded by Riozim which gained 6,67 percent to settle at 32 cents. RioZim announced that it will pay $8 million for Falcon Gold’s Dalny Mine, a deal which will double its asset value and increase gold output by 100 kilogrammes per month after a year.

Bindura, Hwange and Falgold were unchanged in the week at 3,5 cents, 3 cents and 0.6 cents in that order.

Foreigners purchased $542,934 worth of shares and sold off shares worth $1,29 million.

Foreign participation on the bourse came in at 59 percent.