By Enacy Mapakame
Stocks maintained an upward trajectory on firming demand as investors on the Zimbabwe Stock Exchange (ZSE) amassed a cumulative $2 billion last week alone.
In the week to Thursday, all the key market indicators finished in the black, week on week as investors seek safety from a volatile economic environment characterized by foreign currency shortages and inflationary pressures.
Week on week, the ZSE All Share Index was also 7 percent above prior week to close pegged at 221,70 points sustained by gains across board.
At 739,53 points, the Industrials Index was 5,08 percent above the 690,67 points recorded a week earlier.
The ZSE Top 10 jumped 7,5 percent to 216,84 points on gains in the market’s heavies while the Mining Index of two active counters paced the fastest with a 13 percent gain to 282,64 percent.
Total market value rose 7,21 percent to $29,4 billion while the primary indicator, as investors piled money on the market to cushion themselves from the volatility.
Last week, the Zimbabwe National Statistics Agency (ZimStats) released CPI figures showing annual inflation for the month of May now at 97 percent, although Treasury has predicted it will recede before year end.
Market watchers contend that while monetary and fiscal authorities have instituted measures such as introduction of the interbank market for foreign currency, there still remains some critical elements that need to be addressed to restore the macro-economic balance and investor confidence.
As of Friday, the illegal apparel market rate was RTGS$11 against the greenback, with prices of commodities rising.
The tobacco selling season usually ushers in relief for the foreign currency market. But as of last week, the selling season had generated US$332,9 million which is 42 percent below the US$574,5 million recorded during the same period last year. Tobacco is the country’s second largest single foreign currency earner after gold.
Source : The Herald