The stock market opened the week flat on Wednesday after a two-day holiday break.
Stocks, however, rose marginally on Thursday amid improved sentiment following the first sale of the Marange diamonds on Wednesday.
The first batch of 900 000 carats of diamonds were sold, realising US$72 million and we expect the inflows from the sale of these diamonds to help in easing liquidity challenges.
The ZSE Industrials closed the week 0,25% up at 131,38 points compared to the previous week as the market continues to be largely driven by the heavyweight counters though investors have started to show some interest in the small cap counters.
Afre led the weekly risers, putting on 28,5% to close at US9 cents followed by Star Africa advancing 27% to end at US7 cents following the group’s report that their average borrowing costs have reduced to 10% from 42% with half of the funds raised from the recapitalisation. Ariston collected 25% to close the week at US1,5 cents.
The weekly losers were led by ABC, down by 11,1% to US16 cents followed by TPH which lost 9,09% to close the week at US5 cents. Other losses were recorded in Meikles, down 8,93% to US25,5 cents and Dairibord which gave up 8,75% to close the week at US7,3 cents.
The mining index lost 4,73% closing the week at 128,43 points dragged by Bindura, losing 16,7% to US10 cents while Falgold pared 14,3% to close the week at US3 cents.
Though the market is showing some signs of recovery as witnessed by investors’ interest in the stable counters such as Delta, Innscor, Seedco and Econet, market breath remained bearish with only 17 counters trading in the positive territory while 24 were in the negative with the remaining 35 counters trading unchanged.
Stocks on Wall Street were under pressure early on Friday, following three consecutive days of declines, as investors digested dour reports on retail sales and inflation.
The Dow Jones industrial average (INDU) lost 9 points, or 0,1%, at the start of trading. The S&P 500 (SPX) dropped 2 points, or 0,2% while the Nasdaq (COMP) shed 6 points, or 0,3%.
Asian shares were trading slightly firmer on Friday afternoon; with Japan’s Nikkei average was trading 0,24% above its opening position higher despite exporters having given up earlier gains as poor US jobs data underscored persistent worries about the sluggish pace of economic recovery.
The Nikkei average was 21,87 up while the Hang-Seng Index in Hong Kong, had gained 14,75 points or 0.07% to 21 120,46 points.