ZSE downward trend continues; as US Stocks tumble after Apple, energy slump

HARARE – The downward trend in the Zimbabwe Stock Exchange (ZSE)  continues on the back of limited trading in the blue chip counters.

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stocks

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The industrial index was down 0.30 points to settle at 134.55 points while the mining or resources index was at 0.08 points to close at 29.10 points.

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BAT led the shakers with a 0.06 cents loss to close at $11, NAMPAK lost 0.43 cents to trade at 0.026 cents while PADENGA retreated 0,40 cents to 0.08 cents, DELTA was 0.002 cents weaker at 0.84 cents and INNSCOR dropped 0.001 cents to trade at 0. 6 cents.

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On the upside DZLH added 0,51 cents to 0.08 cents, OK ZIMBABWE put on 0.10 cents to close at 0.07 cents and BARCLAYS improved by 0.01 cents  to trade at 4.31 cents.

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On the mining index, FALGOLD gained 0.10 cents  to 0.50. BINDURA, HWANGE and RIOZIM were unchanged.

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Meanwhile the JSE closed up for a second straight session on Wednesday, as resources and platinum shares rose on plans for further restructuring steps in the troubled sectors.

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Glencore earlier announced a rights issue and Anglo American Platinum reported the selling price for its labour-intensive platinum mines in the Rustenburg area, which are to be acquired by gold producer Sibanye.

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The session was also characterised by company results from insurer MMI Holdings and pharmaceutical giant Aspen. Niche financial group Sasfin reported annual financials as the market awaited the results of Discovery and FirstRand, due out on Thursday.

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Globally Asian markets rallied strongly, with the Nikkei closing nearly 8% up, its steepest one-day advance in four years. Several other equity markets, notably China, Korea and Australia rebounded by more than 1.5%. The Shanghai Composite was 2.29% higher after the Chinese authorities promised calmer trading would soon set in at the recently volatile bourse.

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Barclays Research said there were several reasons behind the bounce in risk, notably hopes of fiscal policy support from China and Japan.

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“European equities have also been lifted by the improvement in risk sentiment elsewhere,” Barclays said.

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The Dow was 0.34% higher at the JSE’s close with the FTSE 100 adding 1.35% and the Paris CAC 40 was 1.92% higher.

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At 5pm the all share had added 0.3% to 49,723.60 points and the blue-chip top 40 was up 0.32%. Resources led the gains, firming 3.55% and platinums added 2.28%. Banks recovered 1.15% and financials closed 0.91% higher. The gold index dropped 1.03% and industrials were 0.46% off.

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IG SA market analyst Shaun Murison said the JSE firmed on the day following a rebound in Asian markets from oversold levels.

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“Gains were broad-based,” he said.

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Market focus was on Anglo American Platinum’s announcement of an agreement with Sibanye to sell its Rustenburg mines for R4.5bn.

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“That is more than the market cap of Lonmin at present,” Mr Murison said.

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Aspen reported strong revenue growth of 22%. “The positive outcome was achieved despite an unfavourable exchange rate environment in which the dollar was particularly strong, as well as increasing costs for the group,” Mr Murison said.

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Among individual shares on the JSE global mining group Glencore continued to find market favour after its rights issue announced earlier in the week. It closed 6.23% up at R29.68. Anglo American added 5.36% to R157.38.

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Market heavyweight Naspers softened 0.6% to R1,687.02.

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Among gold stocks Sibanye lifted 5.41% to R18.50.

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Anglo American Platinum picked up 3% to R323.42, while Lonmin, with a market cap of R3.2bn, leapt 7.44% to R5.34 from recent record lows.

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Insurance group MMI Holdings ended the day 1.75% down at R25.89 after earlier announcing full-year core headline earnings rose 6% to R3.5bn.

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MTN shed 5.35% to R168.

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Aspen closed 0.32% off at R324.91. It announced full-year headline earnings per share were up 15% at R12.19 for the year ended June.

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Sasfin rose 4.13% to R56.75 after it said full-year headline earnings per share had grown by 16.5%.

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