WEDNESDAY, 12.00NOON
ZIMBABWEAN market analysts are confident that the Zimbabwe Stock Exchange will rise to new heights this year, thanks to the recent IMF decision to resume balance-of-payments support for Zimbabwe’s economic reforms and the budget, reducing the pressure on interest rates.
The industrial index, which in 1996 rose by a whopping 121%, was on Monday this week pegged at a new record high of 10 993 points.
There were also indications that the Zimbabwe dollar would remain stable for the rest of the year, supported by inflows of foreign reserves from tobacco exports, which are expected to earn more than US$727-million this year.
Stockbroking firm Quincor James Capel said although a slowing down of most large capitalised stocks is likely, the bourse’s bellwether counter, Delta, will continue to provide support for the market and re-establish its top position.
“This could spike the index through the 11 000 point barrier in the short term and set a new support level around 10 500 points,” the firm said.
Money market rates, which have steadily been rising for the past few months, seem to be stabilising around 25%, halting the exodus of investors from the equity market.
The market is also expected to respond positively to next week’s budget, which analysts said should focus on improved revenue collection rather than tax increases as in previous years.
BUSINESS BRIEFS
SADC MEETING FINANCE ministers and central bankers from all 12 Southern African Development Community countries will meet in Pretoria on Friday. They will discuss a number of projects being undertaken by the SADC finance and investment sector co-ordinating unit.
VIRGIN ADDS FLIGHTS
VIRGIN Atlantic Airways on Tuesday added a seventh flight per week between Johannesburg and London. The company said in a statement on Wednesday: “The Johannesburg to London route has proved so successful for Virgin Atlantic Airways that after less than a year of operations the company has now stepped its frequency to a daily service.” *
DOUBLE TAX ENDED SA and Indonesia on Tuesday signed a treaty abolishing double taxation against companies trading between the two countries, as SA and Indonesian leaders met to discuss ways to boost economic ties. Trade between the two countries is currently valued at $200-million a year.
KEBBLE JOINS JCI RANDGOLD director Brett Kebble has been appointed to the board of Johannesburg Consolidated Investments, SA’s first black-owned mining house since its takeover by a black empowerment group. Kebble was a major financial backer of Mzi Khumalo’s bid for JCI. He has previously denied that he would be appointed to JCI’s board.
KWV MAY APPEAL KWV, the wine and spirits co-operative undergoing a change to a public company, says it will decide over the next few days whether to apply to have at least part of a forensic audit of its assets kept confidential, MD Willem Barnard said on Tuesday. The audit was ordered by Land and Agriculture Minister Derek Hanekom, who brought a court action to halt KWV’s conversion until certain disputes were sorted out. Barnard said KWV would only seek to keep confidential those parts of the audit report that might prove detrimental to its business if revealed to its competitors.
KENYA KEEPS UN ORGAN A PLAN by industrialised countries in the UN to move the only Africa-based United Nations organ, the United Nations Environment Programme, from Kenya to Europe, failed when 136 developing countries opposed the move.
KENYA SHILLING DIPS POLITICAL unrest in Kenya has caused the country’s currency, the shilling, to shed 3,5 points against the United States dollar. The dollar exchanged at 58 shillings on Tuesday, from 54,5 shillings last week, and is likely to fall further if violence continues.
ZIM TIMBER STRENGTHENS ZIMBABWE’S booming timber industry has increased turnover 37,7% to US$90-million this year, and increased employment levels by 10% to 15 800 workers. Exports have also increased 10% and the volume of timber log harvesting increased by 6,3% to 1 324 000 cubic metres.