Zimbabwe: ZSE Revenue Soars 85pc

Source from:  The Herald (Harare) 24 December 2007 12/26/2007

EQUITIES faltered to deceive in last week's trade, as investors took profits and others kept at bay in trade fashions synonymous with holiday periods. Last Thursday, the main industrial index recovered 1,28 percent or 16 650 017,38 points to close at 1 317 203 014,86 points, shedding losses reported in the previous two days of trade. Heavyweight stocks fell on that day. Minings rose 2,28 percent to 1 317 224 149,59 points even when most counters were indicated flat. Average daily Zimbabwe Stock Exchange revenue climbed 85 percent to $6,2 trillion Thursday after falling to below $3,5 trillion earlier the week. Total market capitalisation recouped earlier weaknesses closing 1 percent stronger at $16 909 trillion on the day. In the week ago period, market cap stood at $14 600 trillion, representing 15.8 percent gain over the week. Volume traded was thin, as investors appeared to be taking positions ahead of the Christmas and New Year's holidays that are usually cash spinning periods. On Monday, industrials had started up 3,3 percent at almost 1,4 million points amid uncertainties over the current cash crunch. Tuesday, the index sank 4 percent before sliding another 3 percent at midweek. Minings followed similar trading patterns, climbing 7,1 percent at week opening; up 2 percent on Tuesday before dropping 2 percent onWednesday. During the week under review, Reserve Bank of Zimbabwe governor Dr Gideon Gono unveiled a new family of bank notes -- $250 000, $500 000, and $750 000 -- simultaneously announcing the phasing away of the $200 000, which he said had been concentrated in the hands of speculators. While the news appeared good, the cash situation never improved. Consumers continued spending chilly and wet nights in bank queues waiting for cash. Only a few managed to gain access to the limited resource. Stock market trades were not necessarily affected by the cash turmoil, as investors made strategic use of the Real Time Gross Settlement system. In Thursday trading, industrial gains were paced by Innscor up $200 000 to $1 600 000 followed by pork processor Colcom that rose $90 000 to $1 700 000. Cottco, Edgars and Zimre each gained $50 000 to settle at $1 000 000 and $200 000 for the last two stocks in that order. Of the index shares, heavyweight stocks led decliners. Cement maker, PPC dropped $2 million to $27 million followed by Old Mutual down $600 000 to $13,4 million. Hotel group, Meikles and tobacco processor BAT fell $500 000 apiece to end at $8 million and $9 million respectively. ABCH ended $200 000 weaker at $2,2 million. Mining advances were recorded in Halogen, which rose $10 million to finish at $50 million while Hwange, Bindura and Rio Zim traded flat at $2 million, $5,8 million and $13 million in that order. No trades were recorded in Falgold. Enditem