Bull run on ZSE continues


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The bull run on the Zimbabwe Stock Exchange which began in January and was temporarily halted by President Robert Mugabe’s remarks that judges who were questioning the government’s illegal detention of two journalists should resign seems to be back on track and there is wide speculation the key industrial index could reach 8000 points.

By February 19, the industrial index had gone up by 15.45 percent clocking 7 398 points but it was still slightly below the level at which it was the same time last year, 7 973 points.

The mining index on the other hand had surged 19.98 points going up to 450 points better than at the same time last year when it was 419.

Impressive results released by Barclays Bank, Radar, Macmed and Rio Tinto seemed to have revived investor confidence.

Although the index dropped immediately after President Mugabe had repeated his remarks on judges at his 75 birthday, it picked up again the following day.

Speculators seem to be continuing to look for bargains.

During the week ending February 12, troubled Mhangura which was almost de-listed after it failed to submit its annual results on time and only did so a day before the new deadline set by the ZSE saw its price go up by 60 percent from 5 cents to 8 cents despite the staggering loss it had made.

While the market has been waiting for good news to propel it further, what is disturbing is that President Mugabe has once again dodged the question about when he will retire.

He has also once again reiterated that the government may reintroduce price controls and may go it alone if the International Monetary Fund’s prescription continues to hurt the people.

A team of senior government officials is in the United States trying to negotiate a package that could bring the country back on its feet. But there are reports that the IMF has made additional demands which might be difficult for the government to meet.

 

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Charles Rukuni
The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

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