- Meikles share price edged 2.42%
- However, the local bourse closed in red at 11,32.48 points
- ZSE dipped 1.13% as profit-taking takes toll
Harare - Diversified group, Meikles Limited’s share persisted an upward trend yesterday to register a 24th consecutive gain despite the local bourse closing in negative territory.
Meikles edged 2.42% up on trading 7 700 shares to settle at a record high of $205.2916, emerging as one of the risers in the session. Earlier in April 2021, Meikles announced the intention to unbundle its 100 percent-owned agricultural processing business, Tanganda and a recent statement released on Tuesday shows 2 December 2021 as the date for the separate listing of the tea company on the Zimbabwe Stock Exchange (ZSE), a development that will complete the unbundling process.
The unbundling follows the sale of the Meikles Hotel in February 2020 for a reported amount of about US$20 million as the Group strives to limit its horizons to minimise costs as it is also in retailing and mining.
Meanwhile, in a trading update for the first quarter ended 30 June 2021, the Group hinted at possible investments in motorised tea harvesting machines to curb the shortages of labour which has affected tea harvesting during the period.
The Meikles share is likely to remain stable, if not rise as it is likely to benefit hugely from the government’s efforts to boost agriculture and the mining sector, which is likely to boost production and demand for Meikles’ products and services.
Other counters that out-formed was the diversified agro-based, CFI Holdings which notched 19.89% to settle at $49.3000 to emerge as the best performer, followed by the agricultural equipment maker, Zimplow which buoyed +2.78% to $20.1630.
Despite the solid performance from the above counters, these gains failed to rescue the local bourse from a total blood-bath session as it succumbed 1.13%, reversing the prior session gains to close at 11,32.48 after the blue-chips further widened losses.
The bourse opened the week on the extended recession as profit-taking induced high sell-offs takes toll. Clothing giant, Truworths performed the worst in the session on plunging -16.2% to $2.5100 trailed by Mashonaland Holdings which fell for a fourth consecutive session on dwindling 15.66% to settle at $2.9646.
Capping the top five laggards was Nampak which eased 7.65% to $12.0000.
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