Local investors reacted to a Cabinet reshuffle in the week by piling onto the stock market, leading to the mainstream index hitting another record setting level of 505,32 on Friday.
As President Robert Mugabe has shown time and again, he is more concerned by loyalty to his person than the needs of the country by appointing Ignatius Chombo, a staunch supporter who comes from the 93-year-old leader’s rural home district of Zvimba, to superintend over the country’s economy as finance minister.
Apart from having no background in finance, Chombo is the poster-boy of corruption in Zimbabwe, appearing in numerous reports detailing illegal dealings at Harare City Council.
With the currency market in turmoil, Chombo’s history does not inspire confidence, much like the rest of Mugabe’s recycled Cabinet line up, many of whom have criminal histories.
Local punters reacted by hedging bets in tangible assets, and the industrial index gained 12,59 percent during the week, sprinting past the 500-point mark, with heavyweight counters Econet, Old Mutual and Delta the mainstay.
The mining index slightly gained 0,48 percent to close at 141,39 points on Friday after Bindura take a dip.
Market capitalisation rose 12,36 percent to $14,3 billion from $12,7 billion recorded in the previous week. Total market turnover increased more than double to $55,8 million from $21,02 million in the previous week.
Mobile operator, Econet added 63,23 percent to179,96 cents while Delta and SeedCo advanced 3,56 percent and 0,87 percent to settle at 289,89 cents and 289,5 cents respectively.
Old Mutual advanced 39,8 percent to settle at 1,419.98 cents while National Foods gained 5,3 percent to settle at 680,22 cents.
However, other heavyweights, Padenga and OK eased 4,16 percent and 5,75 percent to 85 cents and 30 cents respectively.
Innscor also eased 0,31 percent to settle at 178,5 cents while BAT eased 2,24 percent to settle at 3,560.94 cents. Simbisa eased 2,86 percent to settle at 68 cents.
Among the gainers, FML and Nampak advanced 50 percent and 20,83 percent to settle at 18 cents and 14,5 cents respectively.
ART and Barclays advanced 20 percent and 17,14 percent to settle at 6 cents and 8,2 cents respectively.
Cement maker, Lafarge and FML Properties advanced 16,73 percent and 16,67 percent to settle at 82 cents and 5,6 cents respectively.Advertisement
Willdale and Star Africa advanced 12,86 percent and 11,11 percent to settle at 0,79 cents and 2,5 cents respectively.
Hippo Valley and NMB advanced 7,09 percent and 5,88 percent to settle at 151 cents and 9 cents in that order.
Zimre and Dairibord advanced 4,4 percent and 2,58 percent to settle at 2,61 cents and 17,5 cents respectively.
CFI and TSL advanced 2,56 percent and 2.31 percent to settle 69,74 cents and 36,32 cents while Meikles and Masimba advanced 1,63 percent and 1,41 percent to settle 40 cents and 7,2 cents respectively.
Partially offsetting the gains recorded by the industrial index were Turnall and Axia whose share prices fell 18,06 percent and 7,15 percent to close at 1,18 cents and 28,94 cents respectively.
CBZ and African Sun also eased 4,15 percent and 1,96 percent to close at 23,1 cents and 5 cents respectively.
FBC, Colcom and Zimplow eased 1,03 percent, 0,35 percent and 0,25 percent to settle at 24 cents, 72 cents and 8,1 cents respectively.
On the mining space, Falcon advanced 0,5 percent to close at 2,01 cents while RioZim added 8,91 percent to close at 110 cents, offsetting the loss recorded by Bindura whose share went down by 11,11 percent to close at 6,4 cents. Hwange was unchanged at 3,74 cents.
Foreigners remained net sellers in the week, disposing of shares worth $26,97 million compared to buys of $5,2 million.