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Business Reporter
The main Industrials index on the Zimbabwe Stock Exchange (ZSE) advanced to the highest closing level in 11 months as investors seek a safe haven for their United States dollars ahead of the introduction of the loathed bond notes.
The gains have since reversed losses recorded earlier in 2016 to a year-to-date gain of 4,82 percent as of Thursday. By the end of September, the market was down by 13,84 percent year-to-date.
The shares have also rallied to record a month-to-date gain of 21,66 percent.
Old Mutual, which is also listed on the JSE and the LSE, is one of the preferred stocks by investors. The company’s shares listed on the ZSE are now at a 31 percent premium to JSE prices, after adding 1,34 percent to close at 320 US cents.
Investors have been piling in on equities ahead of the introduction of bond notes in November, which some Zimbabweans believe is a way of introducing the Zimbabwean currency. The government, however, insists that the introduction of bond notes would be good for the economy.
Online Reporter