[2008-04-07]  ZSE shares end volatile trading
ZIMBABWE Stock Exchange shares ended a volatile trading session last week amid uncertainty over the election results and rioting inflation.

At close on Thursday, stocks gyrated sending the mainstream industrial index lower 3,25 percent or 477 114 523.86 points at 14 189 510 952.64 points, as investors awaited the presidential poll outcome.

The mining index rose 12,1 percent to 12 160 783 270.02 points, however, on increased buying after stock prices weakened sharply on Tuesday.

The Central Statistical Office reported last week that annual inflation for February had climbed to 165 000 percent from 100 580 percent in January.

The earnings season also ended on Monday. Most results were at the top end of analysts’ predictions. For banks, there was an interesting shift in profit trends.

Banks realised the bulk of their profits from non-funded income, as opposed to interest income, the type of income that constitutes a bank’s key operations.

They took in more from foreign currency deals, investments into the property market, as well as the money market.

Some have been accused of investing on the volatile and risky stock market, fanning its rapid growth. Banks have played down such allegations.

During the review week, the Reserve Bank also announced the introduction of the $25 million and $50 million dollar notes, as prices rocketed and the burden of carrying smaller denominations turned into a nightmare.

Withdrawal thresholds were also lifted to $1 billion per day for individuals from $500 million. Friday morning, some banks were still limiting withdrawals to $500 million.

On the equities, investors were jittery throughout the week. A few large buys in heavy weight counters lifted the key index 28 percent on Monday while the mining index almost doubled. Minings climbed an unprecedented 80 percent on the day.

The resource index corrected on Tuesday, however, falling 24,9 percent, which may suggest one giant investor selling off after pocketing sizeable profits a day earlier.

Minings closed up 19 percent on Wednesday. The index has benefited from the rally in global commodity prices.

On Tuesday, the main index rose a modest 11,04 percent before losing 4,45 percent at mid-week. Such kind of shaky behaviour was inevitable on the stock market, which has followed similar up and down trends since two weeks ago.

Since January 02, the main index has gained more than 640 percent while minings are up 415 percent to Thursday last week.

Thursday, average daily ZSE turnover fell to $46 trillion from more than $54 trillion a week ago. Market capitalisation reached over $170 000 trillion or $170 quadrillion.

Of the index shares on Thursday, there was increased activity in second liner shares while a few other heavyweights declined.

Industrial firm, Powerspeed paced advancers rising 40 percent followed by Zimsun which gained 38 percent. Banking group, NMBZ rose 37 percent, Pelhams was up 33 percent and PG Industries closed up 33 percent.

Of the ZSE shares, new listing Zeco led decliners falling 29 percent followed by Old Mutual that lost 19 percent. Innscor lost 17 percent while Mash and Colcom finished lower 16 percent and 13 percent in that order.

In minings, Bindura put on 14 percent to $40 million. RioZim bounced back to its period high of $200 million that was attained on Tuesday last week. Falgold closed stronger $1 million at $7 million.

Source: (C)copyright 2007 The Herald ltd.