Market responds to MDC-T re-engagement

mdc_symbolBULAWAYO - The Zimbabwe Stock Exchange (ZSE) has responded positively to the decision by the MDC-T to re-engage with the inclusive government.

Following the announcement to disengage from the inclusive government a fortnight ago there was a blood bath on the ZSE as prices of shares tumbled, much to the discomfort of investors. Exactly a week after the announcement, the Industrial index fell 1.50 per cent, its first fall in three weeks

However, just a day after MDC-T announced that the party had suspended its boycott of Cabinet and the Council of Ministers meetings, confidence immediately returned. Firm bidding has characterised the market since the Government of National Unity (GNU) principals withdrew daggers. Market trades have started to surge on positive sentiment. The resources bourse recorded solid gains at week end, as investor confidence returned to market following the re-engagement of MDC in government, a report from First Banking Corporation. The industrial index surged 5,5 per cent to close the week solid at 157,98 points and the mining index went up 5,43 per cent.

We do not anticipate market trades to mellow down in the forthcoming trading week, analysts said in the report. Investors on the ZSE have been advised to take advantage of the still re-pricing counters. Counters to consider when investing have been noted as those with an interest in the agro-processing, Seedco, Hippo, Natfoods, and Hwange. 28 counters were in the positive with Celsys leading the risers with a record 80 per cent at 0,18c; Radar was a modest 25 per cent up at 25c.

The mining sector also did well with Hwange and RioZim up 7 per cent each at 30c and 300c respectively. Bindura surged 4 per cent to 26c and Falgold was the only mining counter trading in the red down 9 per cent at 10c. Last week analysts said, in response to the stand off in the GNU, the market had put a clear cut direction of where it was going, and that was downward.

Post published in: Manufacturing

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