Punters smile as ZSE surge continues

Written by Hillary Chindodo

Wednesday, 14 October 2009 09:58

The Zimbabwe Stock Exchange’s resurgence continued with both the Industrial and Mining indices rising for the fourth consecutive week.
Although the Industrial Index’s rise for the week was only a marginal the index has risen by an impressive 19% over the last four weeks when it closed on Friday 9 October on 157.27. The Mining Index has not been far behind with a 17% upward movement for the same four week period closing at 225.57. The mining index has risen 15.43% in the last two weeks alone.
In the last week, Bindura Nickel outshone its peers jumping 35.13% ahead to close at US$0.25 dragging the Mining Index up by 5.15%. It was reported in September that Bindura would be starting smelting operations which had been suspended since March 2009. The improving economic conditions and the recent rally in Nickel prices have led the mining giant to re-open operations. In the same index Falgold was 5.88% to close the week higher at US$0.09 while Hwange Colliery was up 5.25% closing at US$0.42. RioZim was however down 2.95% closing the week at US$2.96.
Agricultural inputs supplier Zimplow was higher 33.33% as the Industrial Index’s only managed a marginal increase of 0.03%. Engineering conglomerate Apex led the Industrials with a 42.86% increase while Powerspeed was 41.34% higher. Of the larger corporations on the ZSE, Lafarge jumped 22.22% the same with AFRE. The LonZim owned telecommunications company Celsys continued to disappoint losing shedding a further 37.5% as medical supplies entity dropped 33% in an extremely volatile market where some counters are swinging above 30% either way each week. Prices are still far from being driven by fundamentals with liquidity remaining a real problem.
The Finance Minister, Tendai Biti picked up the Euro Money 2009 Africa Finance Minister of the year for his efforts in stabilising the economy. Though some critics have called this a “nothing” award, it needs to be recognised that the value of the award is more in the perception it will build in the investments world rather than building Biti’s personal credentials. The economy will always be the biggest winner from the confidence in the economy generated by such an accolade. Such an award is a rare vote of confidence from a very influential economic institute in the world.
Saturday the 24th of October will see another investments conference being held in the UK West Midlands city of Coventry. The event being hosted by Zimbabwe Investor Magazine is aimed at exploring and exposing business and investment opportunities and will be opened by Coventry City’s Lord Mayor, Councillor Jack Harrision.
The Zimbabwean Ambassador to the United Kingdom, His Excellency Gabriel Machinga will deliver the keynote speech and other confirmed speakers include the president of Employers Confederation of Zimbabwe (EMCOZ) Mr David Govere, Dr Jonathan Lawley from the UK based Business Council for Africa, Mr Lance Mambondiani of Coronation Financial, Mr Hillary Chindodo of Zimbabwe Investor Magazine and from Leeds University, Dr Farai Magunha as well as investment opportunity presentations from NMB Bank and UK telecoms company Cloud 10 Communications.
More details on the conference and attendance information can be obtained by visiting the event website www.zimbabwebic.org or emailing conference@zimbabwebic.org.

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