Having recovered a little when the MDC led by Prime Minister Morgan Tsvangirai announced that it was re-engaging its partners in the inclusive government, the ZSE was back in the red as the political players failed to meet within 15 days to initiate the resolution of all outstanding issues pertaining to the GPA as expected by the SADC Troika summit held in Mozambique.
The Industrial Index was lower 3.86% with heavy losses being recorded in Zimpapers which fell 37.50%. Pressure groups have taken the largest shareholder in Zimpapers after the government, Old Mutual to task over their investment in the company with one circulating cyber petition for the giant insurer to dump their holding. CFX continued its dismal or non performance with a 33.33% drop. The bank, whose shareholding is now a subject of controversy, is desperate to find an investor to shore up its capital reserves as per the new RBZ requirement.
The Mining Index suffered heavier loses dropping 7.59% in the week. Falgold lost 50% of its value over the week while Hwange shed 22.22%. Despite the losses, the ZSE remains heavily undervalued and therefore still present good investment opportunities for the long term investor.
The market is now hoping the budget to be presented to parliament on the 2nd of December will bring some sanity. Finance Minister Biti is expected to spell out how the much debated IMF funds will be used.
Courtesy of Zimbabwe Investor Magazine, incorporating Zimbabwe Investor Research Institute (ZIRI). www.zimbabweinvestor.com, [email protected]Post published in: Manufacturing