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Profit taking frenzy dominates ZSE trade

marketmovers with Kumbirai Mafunda

INVESTORS went into a profit taking frenzy early Wednesday sending shares into the negative zone in a trading week cut down by the Workers’ Day holiday.
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The market retreated 40 287 64 points eroding most of the initial gains made in the previous week.

Prominent losers included Meikles down $500 to $11 500, Econet and Delta, which dropped $200 each at $15 000 and $5 500 respectively. Fast foods retailer Innscor also came in for active selling and was quoted $100 lower at $5 400. Ariston’s reports that macadamia prices are firm failed to excite the market as the agri-processor’s shares dropped $60 to $400.

“There is no more energy for a rally. People are sceptical about the contents of Gono’s monetary policy,” noted one market veteran.

Although losers dominated the list, some of the leading shares managed to finish with an extended gain under the lead of Circle Cement which rose $300 at $2 100.

Industrial agri-processor National Foods cheered by market speculation that the government was importing grain to avert massive starvation added $200 to $7 300 while Cairns rose $90 to close at $2 100. Also far from the grieving big caps ZSR shares firmed $100 to $750 on Wednesday before adding another $50 to $800. This was attributed to the sweet music released on the market last week of unbundling and separately listing Redstar and its haulage division.

Meikles Africa’s and Interfresh’s chief executives giving up work also typified the week. Meikles’ Chris Parvin is leaving the hospitality and retail group at the end of this month while Interfresh’s Evan Christophides is leaving the industrial-horticulture concern after a 15-year flirtation.

In sheepish fashion minings slipped 0.09% to close at 595 228 09 weighed down by a $10 loss in Falgold at $120. Market strategists were predictive that the market would continue in the red as long as mystery surrounds the presentation of the monetary policy.

Inflation data statistics, which will be released on Friday, are also likely to influence the market this week.

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