NSSA snaps up 10% Ni­cozDi­a­mond shares

Chronicle (Zimbabwe) - - Business -

NRZ re­quires $400 mil­lion in the short to medium term for re­cap­i­tal­i­sa­tion.

In 2014, the Au­di­tor Gen­eral’s re­port for NRZ ac­counts showed that the paras­tatal’s freight unit was gen­er­at­ing annual rev­enue of $91,2 mil­lion, but in­cur­ring ex­pen­di­ture of $103 mil­lion.

The pas­sen­ger unit had annual rev­enue amount­ing to $3,2 mil­lion, with costs over three times more at $10,9 mil­lion—@okazunga. STATE run pen­sion fund, National So­cial Se­cu­rity Au­thor­ity (NSSA), on Wed­nes­day bought 56.6 mil­lion shares, 10 per­cent of Zim­babwe’s largest short-term in­surer Ni­cozDi­a­mond to­tal is­sued share cap­i­tal, that were off­loaded by a for­eign in­vestor at 2,75 cents.

Stock­bro­kers said NSSA’s big buy, of 56 643 478 shares at $1 557 696 is part of the nar­ra­tive where lo­cal in­vestors are on the hunt for safe haven eq­ui­ties to guard against po­ten­tial loss of value when the “bond notes” are in­tro­duced.

The pen­sion fund al­ready owned 28.15 per­cent shares of Ni­cozDi­a­mond be­fore Wed­nes­day’s pur­chase, which makes it the largest share­holder ahead of Zimre Hold­ings, which holds a 28,58 per­cent stake.

Other ma­jor share­hold­ers are Zimre Hold­ings Lim­ited with 28,78 per­cent and Camp­bell Bruce with a 10 per­cent stake.

The cen­tral bank has said it plans to in­tro­duce $75 mil­lion of the sur­ro­gate cur­rency, which it says is backed by an Afrex­im­bank fa­cil­ity, by the end of this month and $200 mil­lion in to­tal.

NSSA, which has 70 per­cent of its in­vest­ments in the eq­ui­ties mar­ket, has in­ter­ests in 53 of the 60 com­pa­nies listed on the Zim­babwe Stock Ex­change, hold­ing at least 10 per­cent share­hold­ing in 12 coun­ters.

The NSSA deal pro­pelled turnover for the day to a healthy $2 255 mil­lion, from $148 773 recorded on Tues­day. The main in­dus­trial gained 0.65 per­cent to close at 128.72 points, while the min­ing in­dex advanced 0.37 per­cent to set­tle at 42.84 points.

Mar­ket cap­i­tal­i­sa­tion edged up from $3,533 bil­lion recorded the pre­vi­ous day to $3,556 bil­lion while vol­umes traded in­creased from 2,234 mil­lion shares to 66,123 mil­lion.

Econet advanced 3,70 per­cent to close at 29.04 cents.

Will­dale and Masimba picked up 25 per­cent and 15,38 per­cent to close at 0,25 cent and 1,50 cents re­spec­tively. Fidelity and La­farge advanced 10 per­cent and 9 per­cent to set­tle at 11 cents and 30 cents re­spec­tively. ART also added 8,57 per­cent to close at 3,80 cents.

The re­source in­dex gained on the back of Bin­dura, which added 0.70 per­cent to close at 2,90 cents while other min­ing coun­ters re­mained un­changed.

For­eign­ers sold off $2,132 mil­lion of shares and bought shares worth $78,228. — The Source.

NRZ board chair­man Mr Larry Mav­ima

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