AXIA stops trading on ZSE today

AXIA Corporation Limited shares will trade for the last time on the Zimbabwe Stock Exchange (ZSE) today ahead of its delisting next Tuesday.

The Victoria Falls Stock Exchange (VFEX)-bound firm will be listed on the United States dollar-denominated bourse on March 3.

Early this month, shareholders passed three critical resolutions at an Extraordinary General Meeting that further paved the way for the new listing. The shares will start trading on VFEX next week.

Victoria Falls Stock Exchange

“The Zimbabwe Stock Exchange Limited (“ZSE”) hereby notifies the investing public that the last day of trading in Axia Corporation Limited shares on the ZSE is Friday, 24 February 2023,” reads part of the notice from ZSE.

“The ZSE will, therefore, institute a trading halt on Axia Corporation Limited shares effective Monday, 27 February 2023 to allow for the settlement of shares.

“Following the implementation of the halt, Axia Corporation Limited will be delisted from the ZSE on Tuesday, 28 February 2023, and subsequently listed on the Victoria Falls Stock Exchange (VFEX) on Friday, 3 March 2023.”

Recently, the retail and specialty distribution group said the listing on VFEX would create an enhanced pathway for further penetration of more regional markets.

In addition to that, the proposed listing on dollar-denominated bourse will increase the group’s ability to raise capital in foreign currency to support its currency requirements.

Meanwhile, listed cable manufacturer, CAFCA says despite posting a 34-tonne export decrease in the first quarter, it has a three months sales cover in finished goods stock.

The three months cover gives the company ability to meet about 1 400 stock lines the market requires in relation to our weekly production target of 16-line items.

In its first quarter update, the firm said export volumes were 34 tonnes down in the current quarter versus the same quarter last year.

It said some customers in other countries, notably Malawi, are struggling to access foreign currency.

“Our customers in Malawi continue to experience difficulty in obtaining foreign currency so stock replacement there is slow,” said the firm.

“Mozambique in the comparative period had a large once-off order, which was not repeated in the current year yet there is a large order to be delivered in March, which will close the shortfall to this region.

“Rwanda is steady and we are expecting an order in March to DRC. We have opened a consignment stock arrangement in Tanzania.”

Local volumes for the quarter were eight percent down on the same quarter last year with the drop being mainly in the utilities sector and factory cash sales.

Utilities will pick up in the next quarter with two of the three utilities placing new orders and the barter deal hopefully improving as the focus reverts to harvesting and not faults, it noted. However, the company said it has sufficient three stocks cover to meet market requirements.

“CAFCA has three months sales cover in finished goods stock giving us the ability to meet the +/- 1400 stock lines the market requires in relation to our weekly production target of 16-line items.

“We believe that the next three months’ volumes will be higher than the current quarter’s volume.”

The ZSE-listed group manufactures and supplies cable and allied products for the transmission and distribution of electrical energy and telecommunication.-chronicle.cl.zw