The Zimbabwe Stock Exchange’s market value soared US$6 billion in October after shares hit new highs on the back of rising foreign exchange rates and inflation volatility.
All of the ZSE market indicators closed the month in positive territory with punters offloading excess liquidity onto stocks as confidence in the local bourse increased compared to other investment channels.
The market is anticipated to remain a hedge against economic volatility in the short to medium-term as confidence in the country grows, with the latest World Bank Doing Business 2019 Report showing Zimbabwe’s standing on the index was improving.
Zimbabwe moved four places up to 155 out of 190 economies on the ease of doing business rankings.
Government has been working on a raft of reforms to improve the business environment and attract investment.
According to Ernst and Young, Zimbabwe is among the top FDI destinations in Southern Africa since President Emmerson Mnangagwa opened the country for business in November 2017.
In October, the ZSE All Share, the Top 10 and Industrials Indices each added 42 percent to close the month at 163,82 points, 167,48 points and 549,81 points respectively.
At 217,34 points, the Mining Index was 32 percent above the prior month. Total market capitalisation grew 46 percent to US$17,9 billion.
Of active counters, only ZHL, Mashonaland Holdings and Powerspeed closed in the negative; while Falgold, Zeco, and Truworths remained flat. The rest closed the month in the black.
Headline risers for the month were medical consumables firm Medtech, which that put on 200 percent to 0,03c, followed by asbestos manufacturer Turnall, which rose 132 percent to 4,82c.
ZPI and TSL rose by 103 percent to 3,25 cents and 86 percent to 74c.
Also making it into the top 10 risers were GetBucks, which added 84 percent to 14,75c, and African Sun with an 82 percent increase to 14,75c. At 17,41c, Proplastics was 73 percent above prior month. Meikles and Econet jumped 72 percent to 69c and 68 percent to US$2,08 respectively.