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Business Reporter
THE Zimbabwe Stock Exchange main industrial index gained 5,25 percent to 191,14 points on Wednesday after President Mugabe announced a new and leaner 26-member Cabinet.
This was the index’s biggest jump after the 11 percent fall on August 5.
Economic observers and players had been anxious to know the make-up and size of the new Cabinet after Zanu-PF won the July 31 polls.
The anxiety stemmed from the urgent need for a new Government to pronounce and implement policies to rescue seemingly faltering economic growth.
Zimbabwe’s economic grew at an accelerated average rate of 7,1 percent since dollarisation in 2009, but lost steam last year as agriculture and mining slowed.
The new ministers sworn in by President Mugabe at State House on Wednesday will thus have to hit the ground running to jolt slackening economic growth.
However, the ZSE main industrial index yesterday reversed its week-long consecutive gains with Delta and mobile phone services provider Econet among the biggest losers.
The industrial index lost 0,47 percent to close at 190,24 points with beverage maker Delta among the counters that weighed down on the index as it dropped US2,10c to close at US124,90c, Econet lost US1,01c to trade at US53,99c and publisher Zimpapers slipped US0,20 cents to close at 0,80c.
BAT regained US19c to trade at US920c, First Mutual added US0,50c to US13,0c and Padenga moved up US0,49c to close at US5,50c. Truworths was up US0,20c to trade at US3,20c and RTG rose US0,19c to settle at US1,50c.
The mining index was steady yesterday at 48,73 points. Other resource stocks Bindura, Falgold, Hwange and RioZim were unchanged at previous trading levels.
On a month-to-month basis the ZSE industrial index declined 21,99 percent in August to close at 181,71 points with all heavyweight stocks taking major knocks.
The index fell as heavyweights Delta, Econet and Innscor registered losses for the month of 26,67 percent, 27,94 percent and 21,90 percent respectively.
Econet closed the month of August at US48c as Delta dropped to US110c and retailer Innscor fell to US83,4c.
Mid-cap counters also took a battering in August as OK Zimbabwe fell 30 percent to US22c, BAT dropping 29,92 percent to US1000c and Dairibord retreating 30,11 percent in the period under review to end the month at US19c.
Financials could also not escape the great trek southwards with Barclays shedding 47,69 percent to US60c, FBC dropped 20 percent to US9,6c, NMBZ fell 11 percent to US8c while CBZ retreated 10 percent to close at US14c.
While all heavyweights, mid-capitalised and financial stocks all headed southwards the biggest losses in August were recorded in Barclays, Pioneer down 54,02 percent to US4c and AICO Africa shedding 40,08 percent to US4,5c.
The top gainers of the month were Phoenix up 50 percent to US0,75c, Art Corporation rose 25 percent to US0,5 while ABC jumped 20 percent to US60c.
The market declined by a significant 21,66 percent to close the period under review at a total market capitalisation of US$6,56 billion (including the foreign register), representing a 17,15 percent growth since the beginning of the year.
Turnover rose 27,06 percent to US$54,24 million in August. Delta dominated trades accounting for US$14,46 million worth of shares traded.
Econet was the second largest contributor during the period, trading US$13,99 million worth of shares while CBZ contributed US$10,87 million of turnover.
Online Reporter