Insurers in subdued trading in Tuesday’s ZSE trading session
Insurance24 Reporter
HARARE, There was limited activity on the shares of insurance companies listed on the Zimbabwe Stock Exchange (ZSE) as only two counters Old Mutual Zimbabwe and First Mutual Holdings were active albeit on a losing and gaining streak respectively.
Giant Old Mutual retreated by $0.0025 to close at $4.0132 coming down from being the top riser in yesterday’s trading session.
The diversified financial services group and Insurance giant last month reported that all business units performed strongly during the first half 2017 period ended 30 June 2017 and the momentum would carry over during the second half to deliver a positive year ending.
Gross Written Premium (GWP) for the two insurance businesses General Insurance and Life Business totalled $100.8 mln but 2% down from last year.
FML traded at 12 cents, from the previous trading price of 11.70 cents. The group intends to raise $17.25 million through a renounceable rights offer with the proceeds earmarked for the proposed acquisition 80.92% of the entire issued share capital of NicozDiamond Insurance Limited. An EGM for shareholders will be held in that regard at end of this month.
In addition to Old Mutual and FML, there are other three outright insurance counters on the ZSE namely Fidelity Life Assurance, NicozDiamond Insurance and Zimre Holdings.
All the later, three counters did not trade in today’s session. Zimre Holdings is currently negotiating sale of its shareholding in short term insurer NicozDiamond as the group seek to divest from the ensuing acquisition of a majority stake in Nicoz by First Mutual Holdings limited.
ZHL holds 30.03% in NicozDiamond with the National Social Security Authority (NSSA) currently being the major shareholder at 50.89% while other shareholders hold the remaining 19.08%.
Information is that NSSA is the prospective buyer of the ZHL shares in order to increase its majority stake to 80.92% which it will in turn dispose to FMHL.
In terms of the various financial services groups and mobile network company that have insurance business within their operations, CBZ traded unchanged at 10 cents.
FBC Holdings traded lower at 14.06 cents from 14.10 cents ahead of an analyst briefing tomorrow. ZB and GetBucks did not trade.
Mobile network giant Econet traded lower at 43.09 cent from 43.10 cents. The company’s subsidiary EconetLife, recently launched the “Mabhodho Zvakare Promotion” which encourages communities to band together and consolidate their local bereavement support groups into formal burial societies.
The Mabhodho Zvekare Promotion started August 17 and will run until November 11. EconetLife also offers EcoSure a micro insurance product.
Meanwhile, the Industrial Index extended its winning streak after adding 1.03 points to close at 215.09 points. The cement maker PPC (PPC.zw) went up by $0.0625 to trade at $0.7125.
British American Tobacco gained $0.0500 to close at $18.1000 and SeedCo traded $0.0103 higher at $1.5275. Other movers were Zimplow which increased by $0.0101 to settle at $0.0640 , Powerspeed was up by $0.0100 to settle at $0.0600 and Axia pushed up $0.0095 to trade at $0.1400.
CFI, Dawn and National Foods traded unchanged at $0.6100, $0.0210 and $3.8150 in that order.
The Mining index was unchanged at 74.04 points.
Insurance24/ZSE
