[2008-06-05]  Stock market on rampage
THE stock market bulls went on a rampage yesterday with both indices setting new highest one-day gains as investors seek to hedge against inflation risk.

Inflation has risen significantly and as the rate increases investors are seeking investments whose returns increase too.

Meanwhile, business is set to meet the central bank to present measures of controlling the floating exchange rate regime, which has triggered the regular increase in prices of goods and services.

Business has had to struggle against the rising cost base since the start of interbank trading while at the same time budgeting, planning and even pricing has been made almost impossible because of the ever changing rates.

Most economists are agreed that for the floating system to work there is need for critical capital injection, which would then work as a support.

The industrials index leapt 101,47 percent to 908 452 319 846,33 taking its market capitalisation under the Old Mutual Implied Rate to $3,085 billion.

The minings index powered through the psychological one trillion points level and set its highest one-day gain of 157,11 percent to 1 417 204 171 537.04 points after all the counters with the exception of Halogen more that doubled their prices

KMAL gained $4,1 billion to $6,1 billion taking its market capitalisation to $1,4 quintillion, Delta with a market value of $1,1 quintillion rose $600 million to $1,1 billion and Innscor was up $1,54 billion to $2,1 billion. Old Mutual gained $5 billion to $9 billion.

NTS led the risers with a $19,5 or 354,55 percent leap to $25 million while Innscor, Interfresh, KMAL, ZPI and RioZim all posted gains of over 200 percent. A total of 27 counters traded above 100 percent.

Hunyani put on $70 million to $150 million after its April 30 interims where 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.

On the ZSE, 15 counters are now trading at and above $1 billion while only three have passed the quintillion mark in terms of capitalisation. RioZim is the most expensive share after rising $12 billion or 200 percent to $18 billion.

Source: (c)2008 The Chronicles