Zimbabwe: ZSE Shares Rally Sharply As Minings Hit Record Levels

Source from:  The Herald (Harare) 5 September 2007 09/06/2007

ZIMBABWE Stock Exchange shares rallied sharply on Monday and yesterday helped by increased investor confidence, as minings burst through record levels. In yesterday's trading, industrials gained 3,8 percent or 1 682 682.33 points to 46 440 676.40 points -- the highest level in 42 days. Between Friday and Monday, the main index advanced 25 percent driven by news that justified price rises were being allowed. Minings jumped to their highest level in history closing yesterday up 4,1 percent at 28 535 618.64 points, adding to a massive 17 percent gain reported the previous day. Most mining companies export the bulk of their production and world mineral prices are rising steadily, fuelled by rapid economic growth in new industrial giants -- China and India. Overall daily turnover rose to $2,218 billion while ZSE's market capitalisation gained 14,8 percent on Monday to $511,630 billion. Most ZSE shares rose yesterday amid increased buying appetite. Tomorrow's supplementary budget provided no early shocks for the stock market that until only last week, had remained in limbo since late June. Investors believe negative inflation forecast will continue to drive equities, as a hedge against it. Forecast-beating results coming into the market have also helped the equities rally with financial groups, ABC Holdings, Kingdom, CBZ Holdings, FBC Holdings and CFX Financial Services running tops. Of the index shares, heavyweight stocks gained heaviest yesterday. Tobacco processor, BAT paced movers rising $40 000 to $450 000 while telecommunications group, Econet closed higher $10 000 at $290 000. Cotton producer, Cottco rose $8 500 to $33 500 after reporting on Monday it had acquired 51 percent of giant oil firm, Olivine Industries. Hippo recovered $8 000 while Colcom and Afdis finished up $6 000 and $5 000 in that order. Insurance group, Old Mutual led decliners falling down $30 000 to $650 000 and Meikles shed $10 000 to $260 000. Kingdom recorded a $5 000 loss to close at $45 000. Most counters traded positively within $4 000 of their previous levels. In minings, investment holding firm Halogen ended up $50 000 at $500 000 while Rio-Zim put on $40 000 to $350 000. Coal miner, Hwange added $9 000 with Falgold finishing up $2 000. Bindura traded unchanged at $131 000. "It is that time of the season again that stocks begin to climb at an astounding pace, and will be sure to do so until they hang the laggards over the cliff before the bears prey on the desperate cliff hangers," explained an analyst with a Harare stockbroking firm. Enditem