ZSEs big boys come out to play .but the bulls remain in the pens

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ZSEs big boys come out to play

.but the bulls remain in the pens

Taking Stock with Hillary Chindodo

The financial reporting season continued to fuel the market with some of the largest companies on the Zimbabwe Stock Exchange by market capitalisation flexed their muscles to pull the market upwards in what could spark yet another bull run.

The Industrial Index surged ahead 9.47% to end the week at 157.23 while the Mining Index jumped 10.28% to breach the psychological 200 barrier to end the week at 214.52.

Econet was the biggest riser jumping 54.31% to end the week at US$5.10 on the back of some financial results that exceeded expectations. This means that Econet has now risen by 410% since the market was dollarised at the beginning of February 2009. The Zimbabwean telecoms giant posted first-half net income of $41.4 million and revenue of $131.5 million.

Renaissance Capital have now revised Econets year end target price to US $5.90 from US$5.41. They have also raised their forecast for earnings before interest, tax, depreciation and amortization for fiscal year 2010 to $158 million from $108 million while the revenue estimate has increased to $299 million from $212 million.

Conglomerate TSL edged ahead to close the week 48.33%. Another of the big counters, cement manufacturer PPC ended the week under review 22.16% higher at US$2.26 while Innscor rose 19.30% to close at US$0.68.

Pharmaceutical giant CAPS led the biggest fallers closing the week 47.37% lower while electrical manufacturer and trader, Powerspeed were 29.50% down. No amount of World Cup 2010 prospects talk was able to stop hotel and tourism from dropping 20.83%.

The mining index steamed ahead led by Rio Zim which ended the week 12.96% higher at US$3.05. Hwange Colliery was up 11.11% while Bindura Nickel eased up 2.78%. Falgold remained unchanged ensuring that none of the counters under the index were in negative territory. The mining has now more than doubled since the re-opening of the Zimbabwe Stock Exchange and dollarisation in February 2009.

The Moxon-Chanakira saga rumbled on at Kingdom Meikles Africa Limited (KMAL) following the postponement of the much anticipated EGM which was supposed top see the removal of Nigel Chanakira as CEO of the KMAL. Amidst the confusion one of the largest shareholders in Econet off-loaded its shares in the troubled group to a consortium led by former director Rugare Chidembo. The move left some investors wondering how a company that has been suspended from trading on the ZSE could still transact.