ZSE adds another billion

ZSE adds another billion
Published: 15 June 2018
THE Zimbabwe Stock Exchange (ZSE) has continued its rally that has been spurred by the monetary crisis in the country, with the market capitalisation pushing over $11 billon this week.

The market capitalisation which closed yesterday at $11,3 billion, has now gained more than $1 billion since a little over three weeks ago when it reached $10 billion for the first time this year.

The local bourse's recent rally has been a recovery after a slump that was triggered by the euphoria that gripped the market in November last year when Robert Mugabe resigned.

Mugabe's administration had been blamed for the troubles of the southern African nation's economy over the last two decades.

The rally since mid-March, like the bullrun experienced by the market last year, has been driven by inflation and currency risk caused by the economic problems which have haunted the country for years.

Some believe that uncertainty surrounding the country's pending elections has added to the momentum of the market's recent rise.

"There is increasing uncertainty ahead of elections and typically demand for equities increase with the rising risk. This uncertainty is usually high where an election can swing in either side leading to split chances of economic policy shift," reads a comment made by local research firm Equity Axis, this week.

Since the resumption of the market's bullrun mid-March, the benchmark All Share index has gained 37,76 percent to close yesterday at 118,69 points.

The Industrial index has put on 37,48 percent while the Top 10 and the Minings indexes have added 27,11 percent and 47,36 percent, in that order.

Meanwhile, the ZSE has said it will extend trading hours by two and a half hours from the current two hours with effect from July 1, 2018. The exchange has done this to "increase access to the market by investors", to "improve market liquidity" and to "deepen the markets".

- fingaz
Tags: ZSE,


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