[2008-09-16]  Sentiment Bullish On ZSE
Sentiment was bullish on the Zimbabwe Stock Exchange last week, on rising inflation, depreciation of local currency and the RBZ policy announcement.

Positive developments on the political front also lifted the market higher.

After Friday's morning call, only one share had lost.

A political settlement was finally reached on Thursday night after the main political parties agreed on power sharing.

President Mugabe and opposition leader Mr Morgan Tsvangirai agreed on Thursday evening to form an all inclusive Government following intensive negotiations.

A final settlement will be unveiled today.

An announcement by the central bank Governor Dr Gideon Gono that RBZ will license shops to charge in foreign currency also helped to lift shares of some retail shares. OK Zimbabwe stock price doubled on Thursday.

Earnings' results of six counters in the week under review helped lift the respective stocks.

After Thursday trades, the benchmark industrial index rose 51,9 percent. Mining index galloped 61,3 percent. To support the bullish trend on this day, only two shares fell.

There was an occasional profit taking on Tuesday. The market had gone up significantly on Monday when the key index gained 57 percent.

On Tuesday, the mainstream index dropped 24,1 percent with 49 counters falling, against eight risers.

The bulls were back on Wednesday after the announcement of the RBZ policy.

The gains were extended a day later. There were 68 risers on the day. Major movers were sugar producer, Hippo, brick maker Willdale and supermarket chain OK Zimbabwe.

Of the ZSE stocks on Thursday, Old Mutual gained $16 000 to $42 000. Econet, the largest telecommunication firm in terms of market value gained $15 000 to $50 000. Cement maker, PPC climbed $10 000 to $60 000. TA Holdings settled at $30 000, having gained $10 000. As per reports, TA Holdings bid to acquire 78 percent in Premier Finance Group collapsed after it failed to get regulatory approval.

Tobacco firm British America Tobacco leaped $6 100 to close at $16 100. Starafrica was down $500 to $2 000 and Dairibord lost $700 to $3 000.

Elsewhere, Mwana Africa Plc and Central African Mining and Exploration Company and other mining firms with operation in Zimbabwe advanced on hope for a political settlement in the country.

Mwana Africa, which operates the country's largest nickel company Bindura Nickel Corporation gained as much as 5 pence, or 20 percent, to 30,5 pence in London early trade.

Central African, which plans to develop platinum mines in the Midlands Province, climbed as much as 2,25 pence, or 10 percent, to 24,25 pence while African Consolidated Resources Plc jumped 5,6 percent to 14,25 pence.

Source: Copyright © 2008 The Herald.