Zimbabwe: ZSE Shares on the Rise

Source from:  The Herald (Harare) 31 January 2008 02/01/2008

Zimbabwe Stock Exchange shares opened midweek trades mixed with signs that the market is starting to pick up from previous dips on the back of an improvement in liquidity levels. At the opening of trades yesterday, the industrial index was estimated to have lost a marginal 1,68 percent to 1 502 119 459,14 points. The mining index was forecast to have gained 3,88 percent to 1 617 262 673,98 points on the back of a $600 000 gain in Bindura at $6,1 million KMAL was unchanged at $10 million and Old Mutual pared $100 000 to $14 million. Bankers FBC gained $20 000 to $300 000 and NMB picked up $30 000 to $80 000. The banks have heeded the warning given by the Minister of Finance of clearing cash queues by weekend. CFX, which says that all its ATMs are dispensing cash opened, unchanged at $25 000. Barclays was buyers only at $320 000 and CBZ was bid at $450 000 and sellers at $495 000. Banks have come under immense pressure in recent weeks after the Reserve Bank accused the institutions of precipitating the cash crisis. CBZ chief executive Mr Nyasha Makuvise was given a key position (Vice chairman) in the new Ziscosteel board with Minister Obert Mpofu thanking the bank for coming to the steel makers' rescue.At Cottco, the Ministry of Industry and International Trade said that Olivine would with immediate effect, fall under the 'resuscitated' Zimbabwe Development Corporation. Cottco owns 49 percent of the fats and canned food producer with IDC having the remaining shareholding. Zimsun, which will soon change its name to African Sun Ltd for a pan African outlook, was $60 000 ahead at $810 000 CFI ahead of a 5 for 1 share consolidation was unchanged at $190 000 Astra gained $10 000 to $160 000, Cairns was buyers at $195 000 and Tractive, which has benefited from the RBZ's farm mechanisation programme was sellers at $180 000. TSL, which expects better tobacco earnings this year, was $100 000 up at $350 000. Over the past three weeks, equities have hit fresh lows, as investors offloaded their positions in preference of the money market, where short-term deposit rates, for the first time in many months, reported sizeable uplifts. Asset managers were yesterday quoting rates of between 500 percent and 700 percent for deposits of tenor two weeks or below. Last week, rates on similar instruments hit 950 percent at selected finance houses. For 30-day and 90-day paper, interest rates are ranging between 300 percent and 520 percent. Fixed interest bearing assets have benefited from the cash crunch seen in the market since last November. For long, the money market has remained in the doldrums, as equities rocketed. Investors have been unwilling to lock in positions in money market paper due to high inflation estimated by the International Monetary Fund at 150 000 percent. Enditem