Negative sentiment continued on the ZSE with the Industrial’s Index shedding 0,45 percent to close at 100,39 while the Minings Index traded unchanged at 18,74. Only 11 counters traded with activity concentrated on large caps Delta and BATZ. Volumes remained largely thin.Succession upheavals in the ruling party have dominated the country`s political landscape of late, and focus on economic matters seems to have been put on hold. The poor rainy season the country has just experienced has put pressure on government which reportedly needs about $1.5 billion in food aid.
Compounding the situation are media reports that Zambia has suspended maize exports to Zimbabwe as it attempts to shore up its own reserves.
There were no gainers in Monday’s trading session where five counters traded unchanged from Friday`s levels, and six counters where in the red. Simbisa led the fallers, shedding 2.7%, followed by BATZ, which lost 2.1%. Innscor also lost 1.3% as statistics show that the national hectarage devoted to wheat has been steadily declining since 2008.
Hippo and CBZH also registered declines of 0.9% and 0.5% respectively. Powerspeed which issued a further cautionary today advising shareholders of negotiations which could materially impact the share price, did not register any trades, as investors tread with caution.Market rumours suggest that the company is in negoatiations with Innscor for a possible takeover.
Delta dominated value traded with 4.25 million shares at a value of $2.27 million, followed by Hippo with 281.3K shares valued at $98.3K.
Total value traded gained 621% from Friday`s value, largely spurred by the huge block of Delta shares traded, to close the day at $2.38 million.
Volume traded also rose to 6.94 million shares from Friday`s 648.2K shares. Foreigners continue to account for much of the trades, as local investors buckle under the liquidity challenges persisting in the country.