Bulls out, but still running in circles

taking_stockThe Zimbabwe Stock Exchange steamed ahead for another week characterised by high volatility amid indications that a Christmas bull run could be on the cards.

Agriculture led the bull charge as the rain season officially started in the country. Agricultural inputs company Zimplow was the biggest riser charging ahead 53.85% while CFI recorded a 24.19% jump. Cigarette manufacturer BAT Zimbabwe was 22.92% higher in the week. Agriculture is seen as the key to long term economic stability. The high returns in the agricultural sector ensured the Industrial Index closed 3.88% higher at 164.11 points. This, in a week which Pretoria Portland Cement (PPC) announced a 40% slump in profits for their financial year ended. Despite the loss and confessions that the South African giant was part of a price fixing cartel with other cement manufacturers, the counter still ended the week 12% higher than the previous.

Niche banker NMB led the losses with a 35.71% drop while First Banking Corp was 30% lower. Banks have recently been rushing against an extended Reserve Bank of Zimbabwe deadline of 31 October 2009 to reach the prescribed minimum capital requirements. Other industrials to record heavy losses were Redstar (23.91%) and Hippo (22.96%). Mining Indexs only loss was in Hwange which ended the week 14.49% lower. Mining giant Rio Zim was 10.17% while Falgold topped the index with a 21% increase. Bindura Nickel was 8.70% higher as the index closed the week 223.04 points.

A sustained rally could give punters something to smile about ahead of Christmas but while the bulls may be out of their pens, they are still running in circles as high volatility and erratic individual counter performance remain the order of the day. The market will however in the coming weeks be paying close attention to the meetings of the political principle following the SADC Troika summit on Zimbabwe in Maputo Mozambique. Courtesy of Zimbabwe Investor Magazine, incorporating Zimbabwe Investor Research Institute (ZIRI). www.zimbabweinvestor.com, [email protected]

Post published in: Manufacturing

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