Weekly Review: Week Ending 25 June 2015
In the week under review, the industrial index went down for a seven consecutive days and closing the week at 148.6 from 152.94 in the previous week. This represents a decline of 4.34 points (2.84%). Market capitalisation closed at $3.86bn.
Depressed liquidity persists, while the weakening of the rand to the US dollar continues to hamper the prospects of exporters. The harsh environment has had a telling effect on the banking sector whose profitability declined by 82% in comparison to the previous year. The Reserve Bank of Zimbabwe (RBZ) cited credit and liquidity risks as major impediments to positive performance. Meanwhile, the government plans to reschedule its $40million debt with the International Fund for Agricultural Development (IFAD) as part of its re-engagement efforts with the organisation. According to the Minister of Finance, the success of these negotiations will unlock new value for the nation.
- Innscor set up an advisory committee to spearhead the unbundling of its fast food restaurant unit to be separately listed on the Zimbabwe Stock Exchange.
- CFI offloaded its 14% shareholding in fertiliser manufacturer, Windmill, under a debt-swap deal intended to reduce indebtedness; and announced the appointment of Shadreck Vera, Hamish Rudland and Shingirai Chibhanguza as non-executive Directors of CFI Holdings Limited with effect from 10th June 2015.
- Cautionary statements were released by Innscor and Dawn