Market Report Pros and Cons of capacity utilisation increase

THE manufacturing sector capacity utilisation increase from 34,3 percent to 47,4 percent, can be taken in two folds. Firstly it indicates that the promulgation of Statutory Instrument (SI) 64 of 2016 by the Government, which restricted imports on 43 products, which have local equivalents to boost local production has paid dividends.

However, it should also be taken into consideration that the increase in capacity utilisation might be largely due to distortions stemming from the closure of hundreds of companies that are no longer considered in a nationwide survey. Capacity utilisation in Harare averages 48,3 percent, Bulawayo 44,3 percent, Manicaland 43 percent and Midlands 33,3 percent.

The Industrial index’s winning streak extended by 0.82 points (0.64 percent) to close at 129.54 points. British American Tobacco went up by $0.5046 to close at $16.5000,Old Mutual increased by $0.0355 to $3.3355 and Innscor added $0.0080 to trade at $0.3200. Other gains were in Proplastics which was up $0.0050 at $0.0350, Dairibord rose by $0.0030 to close at $0.0400 and the beverage giant Delta put on $0.0025 to close at $0.7825.

CBZ and National Foods traded unchanged respectively. at $0.1050 and $3.3500

The Mining index ended 1.63 points (3.80 percent) higher at 44.47 points after Rio Zim increased by $0.0210 to close at $0.2310. Bindura.

Falgold and Hwange and remained unchanged at previous trading levels at $0.0290, $0.0060 and $0.0300 respectively.