[2008-06-20]  Stock market falls
THE stock market fell yesterday but managed to stay above the 5 trillion points level on the back of profit taking mixed with pre-election jitters.

Meanwhile, lower rates persisted on the money market with dealers forecasting a weekend surplus position of $2,4 quadrillion.

At close the industrial index lost 6,47 percent to 5 160 207 611 002,74 points with a market capitalisation of US$3,6 billion.

The minings index however gained a marginal 0,55 percent to 4 984 897 942 971,33 after RioZim rose $3 billion to $48 billion.

Delta shed $500 million to $6,5 billion, KMAL lost $2 billion to $18 billion and Old Mutual was also $2 billion down to $33 billion taking its market capitalisation to $3,22 quadrillion.

Minings counter Bindura was unchanged at $20 billion after its parent company Mwana Africa announced plans to raise £25 million before expenses through a cash placing, the funds of which would be used to fund exploration at certain core prospects.

The group said the bulk of the amount would fund initial capital expenditure at the Kibolwe copper prospect in the Democratic Republic of Congo and the Freda Rebecca gold mine in Zimbabwe, and to provide, as necessary, financial support to Bindura Nickel Corporation.

Cottco lost $700 million to $6,8 billion after its March finals were increased regional volumes in its seed business and firm lint prices saw the group report a revenue growth of 524 543 percent in the year to March 31.

Seed Co, which traded steady at $7 billion, contributed 64 percent to revenue of $803 trillion (2007: $148 billion) from 40 percent in the comparable period.

Cottco's Finance director Mr Bernard Mudzimuirema however said because of the high overhead costs in Seedco, its contribution to net profit was 44 percent.

NicozDiamond was steady at $140 million after its annual general meeting on Tuesday where it said gross premium as at May 2008 was 296 721 percent ahead from last year at $181trillion.




Source: (C)2008 The Herald