ZSE index falls below 200-point mark

via ZSE index falls below 200-point mark | The Source  January 22, 2014

The equities market slipped below the 200-point mark on Wednesday, shedding 2.87 points to 198.98 points weighed down chiefly by losses in Old Mutual, Delta and Innscor.

Analysts, who say the market is overpriced, expect more downside ahead of the release of financial results by companies with a December 31 year-end.

The biggest loss was in insurance giant, Old Mutual, which shed 4.99 cents to close at 240.01 cents in low volumes while Delta pared 3.90 cents to 130.10 cents with over 800 000 shares trading at more than $1 million.

The beverage maker’s share price has fallen over by seven percent or nearly 12 cents since the turn of the year. The company last Friday reported a three percent dip in revenue for the third quarter to 31 December citing weak demand for its lager brands although revenue over nine months was two percent higher.

Delta’s gloomy outlook was spreading to the market, analysts said.

“Delta is the biggest counter by capitalisation and usually determines the market’s direction, but right now the outlook does not look good and the share price could yet slide even lower,” an analyst told The Source.

Innscor traded lower by 1.89 cents to 78 cents with a turnover of about $100 000. Other losses were in CFI which closed 0.30 cents lower to 3.30 cents and African Sun which shaved 0.20 cents off to 2.40 cents.

The losses were partially offset by gains in Hippo, which put on five cents to 100 cents, retailer OK Zimbabwe which gained 0.70 cents to 20.70 cents. FBC Holdings was another counter to trade in the black, pushing up 0.31 cents to trade at 13.01 cents.

Turnover for the day was at $1.8 million,

In minings, Hwange and Bindura traded lower by 0.50 cents to 5.50 cents and 0.09 cents to 1.40 cents respectively as the index slipped 1.42 points to 35.36 points.

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