Low appetite for Insurers shares ahead of inaugural Youth Day Holiday tomorrow
By Insurance24
HARARE, The Zimbabwe Stock Exchange (ZSE) rebounded in Tuesday’s session to register marginal gains as it continued to trade sideways. For insurers, appetite towards their shares was low, only confined to Old Mutual which traded flat at 5.30c.
Other insurers, ZHL, Fidelity, FMHL and NicozDiamond did not trade and remained at their previous prices. This is also the day the late former Prime Minister of Zimbabwe during the Government of National Unity and opposition MDC leader Morgan Tsvangirai was laid to rest in his rural Buhera.
The insurance sector according to IPEC Commissioner Tendai Karonga funds almost 70% of ZSE stocks together with pension funds as institutional investors and these are probably the strongest local investors.
Total assets of the insurance and pensions industry as at March 2017 stood at $5.4 bln, the bulky of which is invested in capital markets.
In related reports, IPEC has, with immediate effect, suspended six executives of the Unified Councils Pension Fund (UCPF), which pools resources from all the country’s rural district council workers and some urban authorities, and nullified the appointment of its board of trustees.
UCPF has assets worth $34 million and a membership of over 4 000. The industry regulator is presently conducting an “on-site inspection” of the Fund, which, according to preliminary information gathered, has made it “necessary and desirable to conduct an investigation.
The Market
The All Share Index added 0.28 points, with the Industrial Index up 0.82 points. The Mining Index edged up 2.21 points on the back of strong gains in Bindura. Top Ten stocks added 0.40 points with gains in Econet, Innscor and Seedco carrying the day. Turnover was solid at $2.4m with good trade values from Delta, Innscor and OM.
Only four counters gained ground in todays session. Seedco added $0.0486 to close at $1.9486, Innscor put on $0.0130 to $0.9130 while Econet was $0.0100 stronger at $0.7000. Mining company Bindura closed higher at $0.0400 after gaining $0.0028.
Trading in the negative territory; Bristish American Tobacco lost $0.2000 to close at $24.0000 ahead of its full year results briefing this Thursday. PPC shed $0.0025 to end at $0.8500 while Ariston and Delta both slipped by $0.0022 to trade at $0.0095 and 1.5978 respectively. OK Zimbabwe dropped $0.0010 to close at $0.1660 whilst Afrisun inched down by $0.0003 to $0.0362.
