High inflation boom for Zimbabwe stock prices
THE Zimbabwe Stock Exchange showed that high inflation would continue to be a plus factor for stock prices as equities overcame weaknesses to return towards its strong bullish trends. Industrials closed 3.3% or 27,026.83 points stronger at 848,296.83, recouping on profit-taking-induced losses that saw the index plummeting to lows of 792, 221.71.
But as per analysts' predictions, the market recovered to beyond the 800,000 point support level with wider projections for continued upside during this first quarter. Minings also came in higher at 535,555.08 points, up 7.5%, as mining shares took after ramping industrial stocks.
Analysts say high inflation - sitting at 1.281% at the end of December 2006 - will continue to be the negative factor inversely propping up equities and slowing down interest rates.