Rising costs of production, forex shortages take toll on manufacturing sector
CAPACITY utilisation in the manufacturing sector declined to 45,1 percent in 2017 from 47,4 percent recorded last year as rising costs of production and foreign currency shortages, among other challenges continue to take a toll on the sector. The Confederation of Zimbabwe Industries manufacturing sector survey 2017 shows that other constraints blighting the sector include competition from imports, antiquated machinery, which constantly breaks down, low local demand and access to finance. INDUSTRIALS The Industrial Index recovered 0.43 points (0,08 percent) to close at 514.30 points. British American Tobacco added $1,0000 to close at $38,0000 , Cement maker Lafarge increased by $0,0700 to trade at $0,9000 while OK Zimbabwe was up by $0,0177 to close at $0,2257. Delta recovered $0,0102 to settle at $3,0600 and Barclays gained $0,0011 to end at $0,0900.
On the negative: Padenga lost $0,0375 to end at $0,7900, Meikles decreased by $0,0147 to $0,4253 and Axia (declined by $0,0145 to close at $0,2650. Innscor also lost $0,0133 to close at $1,6700 and Old Mutual (closed at $14,2886 after easing by $0,0109.
Week on week the industrials lost 3.41 points (0,66 percent). MININGS The Mining index went up by 5.76 points (4,38 percent) to close at 137.25 points after Bindura added $0,0071 to close at $0,0541 and Riozim improved by $0,0025 to close $1,1475. Falgold and Hwange remained unchanged at $0,0201 and $0,0374 respectively.
The mining index gained 8.38 points (6,50 percent) compared to week ending 20 October 2017.