The ZSE Monitor: Old Mutual in action, as Fidelity stand to lose $200 mln pre-tax profit?
Harare, Of the outright insurance companies listed on the Zimbabwe Stock Exchange (ZSE), only Old Mutual was in action in today’s session after trading $0.0006 stronger at $3.93. The insurance giant is due to announce its interims on 9 August 2017, amid the continued liquidity challenges that is impacting almost every sphere of the economy.
On other hand, Fidelity Life did not trade amid indications the company stand to lose the projected $200 mln profit before tax if Messina Investments succeed in reversing the Langford land sales transaction.
The transaction was expected to shore up their balance sheet and enable Fidelity to write more insurance business.
However, analysts content that the deal is highly unlikely to be reversed, but if that happens, then they might need to recover whatever they have already paid for the CFI debt as well as what they have spent to develop Langford.
The acquisition of 81% of CFI Holdings’ Langford Estate saw Fidelity assuming CFI’s $18 mln debt in the form of $16 mln bank debts and settlement of $2 mln to other Langford Estates comprises of 834 hectares and is expected to yield 11 264 residential stands creditors.
Meanwhile, other insurance companies FML, Zimre and Nicoz Diamond did not trade.
Econet whose Ecosure insurance product continues to soar, added $0.0020 to end at $0.3810. FBC Holdings traded flat at 13 cents. CBZ, Getbucks and ZB registered no trades in Thursday’s session.
Elsewhere, the Industrial Index inched up 0.01 points (0.005%) to close at 201.22 points. TSL LIMITED (TSL.zw) went up by $0.0085 to trade at $0.2410, while SIMBISA (SIM.zw) put on $0.0017 to $0.2180. INNSCOR (INN.zw) was $0.0006 stronger at $0.7275 whilst OK ZIMBABWE (OKZ.zw) was $0.0005 marginally up at $0.1020.
Trading in the negative; MEIKLES (MEIK.zw) came off $0.0305 to end at $0.1855, EDGARS (EDGR.zw) dropped $0.0021 to $0.0400 whilst DELTA (DLTA.zw) lost an insignificant $0.0001 to settle at $1.2725.
The Mining index was steady at 65.45 points. BINDURA (BIND.zw), FALGOLD (FALG.zw), HWANGE (HCCL.zw) and RIOZIM (RIOZ.zw) remained unchanged at previous trading levels at $0.0245, $0.0100, $0.0250 and $0.5500 respectively.
Insurance24/ZSE
