[2008-01-09]  Zimbabwe Stock Exchange rally continues into second week
THE Zimbabwe Stock Exchange rally continued into the second week of the New Year after industrials rose by almost 15,1 percent since Monday on broad-based buying largely driven by the growth in money supply.

At the close of Tuesday’s trades, the industrial index put on 9 percent to 2 657 910 872.53 points while the mining index picked up almost 2 percent to 2 656 116 694.03 points after gains in Falgold and Hwange.

Zimsun led the risers after adding $850 000, or 121 percent, to $1,55 million. The hotel group is in most top 10 stock picks of the year as a result of increased international capital inflows.

Fidelity Life was unchanged at $200 000 and its holding company Zimre pared $5 000 at $355 000.

Zimre says its Mozambican subsidiary has so far written business worth over US$500 000 since its opening six months ago.

Meikles shed $100 000 to $15 million, Tanganda was unchanged at $2 million and Kingdom added $100 000 to $2,4 million ahead of the three groups’ listing as Kingdom Meikles Africa on January 11.

Circle Cement was $500 000 down to $16,5 million while Colcom, which has taken an early lead on year-to-date performers with a 208 percent change, was steady at $4 million.

Blue chips traded mixed with PPC shedding $2 million to $43 million.

Old Mutual was unchanged at $24 million while Innscor put on $200 000 to $3,4 million and Delta added $500 000 to $2,2 million. Retail chain OK gained $31 000 to $101 000 while clothing chain Truworths added $15 000 to $70 000.

ABC led the financials after rising $600 000, or 21 percent, to $3,4 million. CFX added $2 000 to $30 000. Group managing director Mr Onesimo Mukumba said the bank would open about five branches this year as it continues to make notable strides towards profitability.

Overall bank performance in December is likely to fall below expectations, as banks were highly illiquid owing to the cash shortages in Sunrise 2.

TSL, with upcoming financial results, gained $10 000 to $410 000 while Chemco’s bid moved up to $20 million and Hunyani was $75 000 down to $305 000.

Third-tier MedTech gained $16 000 to $35 000.

Meanwhile, treasury rates firmed with dealers reporting short positions as a result of the cash shortages, which have persisted into the New Year. Dealers were quoting between 120-130 percent for short term and between 140-160 percent for 30 to 90 days.




Source: Copyright(c) 2007 The Herald ltd.