ZSE rebounds?

HARARE - Zimbabwe's equities market on Wednesday ended its losing streak after the key industrial index gained 0,21 percent to close at 183,14 points ahead of President Robert Mugabe’s inauguration.

The bourse had traded in the red for two consecutive weeks following Mugabe’s victory in the July 31 poll.

The mining index was unchanged at 48,05 points.

The slight recovery was as a result of gains in mainly Hippo, OK Zimbabwe and Meikles which gained $0,05 and the latter two $0,01 each to $1,05, and $0,21 $0,30 respectively.

Hotelier RTG, which released interims earlier on the day showing it had returned to profitability, also went up marginally $0,011 to $0,00121 cents and African Sun $0,0007 to settle at $0,0207.

However, some big cap counters remained in the red, with Delta trading one cent lower to $1,13 with a turnover of $612 000. Mobile giant Econet lost $0,0047 to $0,50 with a turnover of $418 000 after it was directed on Tuesday by the Postal and Telecommunications Regulatory Authority to reverse its recent 60 percent cut on mobile tariffs. For the third day running, the mining index was flat at 48,05 with Hwange, Bindura, RioZim and Falcon Gold all unchanged.

The recent change of fortunes on the Zimbabwe Stock Exchange (ZSE) — which normally defies convention — comes after the local bourse had declined by 23 percent two weeks succeeding Mugabe’s controversial re-election.

Shortly after the election results were announced on August 5, 2013, the ZSE fell 11 percent during trading, its biggest one-day decline since 2009 sending shockwaves in the market.

Zimbabwe’s veteran leader was yesterday sworn in for a new term after two legal challenges by the Movement for Democratic Change led by outgoing Prime Minister Morgan Tsvangirai in relation to the disputed general election were thrown out of court.

Mugabe won 61 percent of the presidential vote compared to the 34 percent secured by Tsvangirai, the MDC’s candidate in the hotly contested poll.

Mugabe’s party Zanu PF also hammered the MDC in the parliamentary race, winning a two-thirds majority in the 210-seat lower house.

Local election observers and opposition parties have called the polls extremely flawed, claiming up to one million Zimbabweans were disenfranchised.

Western nations have also raised serious doubts over the vote based on these complaints.

However, the African Union and Southern African Development Community were less critical, accepting the result this week.

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