[2008-06-06]  Profit Taking Takes Toll on Stock Market
The stock market gave way under the weight of profit taking yesterday putting a stop to the wide opening created since the beginning of the week.

Since week opening the market rallied to all time highs with the industrials putting on 261,15 percent and minings with a gain of 379,23 percent in three days. "The stock market still carries upside potential as the dollar keeps on collapsing against other currencies and the inflation factor has to be incorporated into the prices," analysts said.


At the close of trades yesterday, the industrials index was 7,77 percent down to 837 847 972 070,09 points and the minings lost 9,66 percent to 1 280 259 366 068, 05 points after losses in Bindura, Falgold and RioZim. KMAL lost $1,6 million to $4,5 million, Delta shed $200 million to $900 million as did Innscor down $200 million to $1,9 million. PG Industries led the fallers after losing $60 million or 27 percent to $160 million. Hunyani was $20 million down to $130 million after its interims where volumes declined 19 percent across the board. Revenue grew 162 292 percent to $171,11 trillion from $$105,3 billion last year. Operating profit was $208,22 trillion including fair value adjustments of $115,63 trillion. The group said margins had been affected by the exchange rate for exporters and the retention ratio. They were however hopeful that the deregulation of the foreign currency market would improve margins.

There were gains however in Powerspeed, which led the risers after gaining $13 million or 260 percent to $18 million and Zimpapers rose $4 million to $10 million. Five counters recorded gains of 100 percent - Halogen at $5 billion, Afrisun at $400 million, CAPS $40 million, General Beltings at $8 million and OK at $30 million.

OK reported its March finals yesterday where overheads grew 125 504 percent above both turnover, which was up 96 500 percent at $211,9 trillion from $219,4 billion last year and operating income 73 964 percent ahead at $25,4 trillion.


Source: Allafrica