HomeBusinessIndustrial index opens the year on a low note

Industrial index opens the year on a low note

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THE Industrial index opened the year on a low note after shedding 0,22 points due to losses that dominated the trading on Friday.

BUSINESS REPORTER

It had closed the year at 162,57 points.

The mining index gained 0, 90 points to close at 72, 61 points

The losses in the industrial index were seen in Colcom, Meikles, Fidelity Life and Barclays while there were no counters in the positive territory.

Colcom and Meikles both lost a cent to trade at 24 cents and 14,50 cents respectively. Fidelity Lifeshed 0,50 cents to settle at 7,50 cents and Barclays dropped 0,05 cents to close at 2,50 cents.

For the mining index Falgold, Hwange and RioZim were unchanged while Bindura gained 10 cents to settle at 6,50 cents.

According to the Africa Development Bank (AFDB) monthly economic review, the industrial index opened trading at 194,15 in the month of October 2014, losing 16,27 points to close the month at 177,88, while the mining index also followed the negative trend losing 18,78 points to close at 70,38 after opening the month’s trading at 89,16

A monthly comparison of stock market activities showed that both turnover value and volume decreased by 17,03% and 25,84% respectively between September 2014 and October 2014.

AFDB said the share of foreign investors in total turnover increased to 60,6%in October 2014 compared to 48,8% in September 2014, while market capitalisation further declined by 9,25% from $5,14 billion in September 2014 to 4,66 billion in October 2014.

On a year on year comparison, the industrial index closed at 177,88 in October 2014, failing to surpass its performance by 31,86 points from the October 2013 figure of 209,54.

On the other hand the mining index closed the month of October 2014 trading at 70,38, surpassing its performance in October 2013 by 17,7 points despite showing signs of declining.

Meanwhile an annual comparison of stock market activities showed that both turnovervalue and volume declined by 36,62% and 74,05% respectively from$44,58 million and $602,9 million shares in October 2013.

“The decline in stock market activities is attributed to the slowdown in economic activity which is affecting listed firms’ profitability hence their attractiveness for investment,” reads the statement.

According to AFDB the market capitalisation, which stood at $5,407 billion in October 2013, declined by 13,73% in October 2014.

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