ZSE defies weak sentiment

via ZSE defies weak sentiment | The Financial Gazette by Staff Reporter 12 Sep 2013

THE Zimbabwe Stock Exchange’s industrial index soared 2,82 percent yesterday, discounting despondent sentiment President Robert Mugabe’s new Cabinet was unlikely to take the country out of its economic quagmire.

Described as “old wine in a new bottle”, the new Cabinet consists of the same old faces which have graced President Mugabe’s government since independence in 1980, with a few new faces in inconsequential portfolios or in deputy ministerial positions.

Deputy ministers’ positions are largely sinecure as they do not act as ministers in the absence of portfolio holders.

The industrial index moved up by 5,25 points to close at 191,14 points. This was on the back of gains in heavyweight counters.

Beverages group Delta rose by 6,99 cents to trade at 127 cents while telecommunications giant Econet added 3,49 cents to 55 cents.

Seed producer, Seed Co put on two cents to close at 80 cents. Grocery retailer OK Zimbabwe went up 1,11 cents to 23,10 cents; Dairibord Zimbabwe edged up a cent to trade at 19 cents and insurance firm NicozDiamond was 0,40 cents firmer at two cents.

A few counters lost yesterday but failed to tilt the scales in favour of the bears. Old Mutual lost five cents to trade at 225 cents; Mashonaland Holdings dropped 0,42 cents to 3 cents, Padenga shed 0,09 cents to close at 5,01 cents and Medtech eased 0,01 cents to close at 0,06 cents.

The mining index put on 1,56 points (3,31 percent) to close at 48,73 points after RioZim was bid higher at 25 cents. Bindura Nickel Corporation, Falgold (which closed one of its mines this month due to liquidity constraints) and Hwange Colliery Company were unchanged at previous trading levels.

Zimbabweans have been apprehensive about President Mugabe’s new Cabinet, which many fear might be unable to inspire confidence in the economy. It consists of individuals President Mugabe a few years ago said were “the worst” he had ever had to run government with.