ZSE Index reaches all-time high

TAURAI MANGUDHLA

The benchmark Zimbabwe Stock Exchange Industrial index yesterday reached an all-time high of 593, 82 gaining 59,69 points on the previous high of November 14 2017, a day before military intervention that was to result in the resignation of former president Robert Mugabe. The rally was driven by movement of heavyweights.

Market capitalisation also reached a peak of $19,5 billion from $15,16 billion on November 14, 2017 as investors buy stocks to hedge against currency risks after the Reserve Bank of Zimbabwe announced reintroduction of Foreign Currency Accounts in the Monetary Policy statement.

As a result, the market has lost confidence in the local dollars which were previously pegged at par with hard currency by authorities.

Indications are that the rally is not backed by fundamentals and will blow real hard soon to self corrrect.

Prices of goods in local dollars at least doubled by end of day yesterday. Finance and economic Development Minister Mthuli Ncube yesterday in Bali insisted the USD/Bond Note rate is 1:1. Minister Ncube said the Afreximbank has offered Zimbabwe a facility to guarantee 1:1 convertibility of RTGS balances into US dollar.

According to the figures obtained from the ZSE yesterday, the All Share index recorded a 16 percent change after gaining 24,53 points to close trading at 176,52.

The industrial Index also reported a 15,96 percent growth after gaining 81,73 points to close trading at 593,82.

The Top 10 and Mining index swelled by 18,03 percent and 19,20 percent respectively.

Performance of the Minings index come after reports one of the few mining counters on the bourse, Hwange Colliery, suspended four of its managers on allegations of gross financial mismanagement including unauthorised expenditure, corruption and unethical business practices.

Latest statistics in the public domain also indicate Zimbabwe’s gold deliveries have breached 1999 peak annual production of 27 tonnes after closing the month of September at 28,02tonnes. This falls only 2 tonnes shy of the country’s 30tonnes annual production for the year after millions were sunk into the sector through support and to offer incentives.

Gold prices are believed to be overdue for a rally on the global market.

Cigarette maker British American Tobacco gained $5 0000 to settle at $33 0000 while Old Mutual went further up by $1 7600 to close at $10 600

Beverages manufacturer Delta, which reported a 37 percent growth in revenue for the half year to September 30, was 19,93 percent higher to 346c.

Telecoms company Econet, due to unbundle and convert debentures into equity is up 19,9 percent to 244,25. Innscor, targeting to be a $1billion revenue company within 15 months, was 19,97percent up to 202,75c.

Related Articles

Leave a Reply

Back to top button