Harare - Zimbabwe Stock Exchange-listed shares jumped 7.06% in just about a month - but economic and company fundamentals have sadly been deteriorating over the same period.
On Thursday the ZSE recorded a 1.29% gain, the third-biggest this year. The ZSE last recorded a hike of over 1% on April 24.
From May 19 to June 19 the market recorded 18 gains and only 5 losses.
Sadly, though, economic fundamentals have remained the same with demand for goods and services waning.
Just last month, the country’s biggest retailer and listed entity OK Zimbabwe reported a marginal 0.8% revenue growth, with management saying subdued business activity is expected to continue into a significant part of its next financial year.
Management at one of the listed property companies, Zimre Property Investments, told their latest annual general meeting that total income for the five months to May was down 22%.
Away from the stock exchange, companies are busy retrenching with reports saying a total of 2 065 people lost jobs from January to date.
Zimbabwe Congress of Trade Unions national coordinator Elijah Mutemeri this week said 9 000 people did not return to work in January this year from the December annual shutdown, as employers failed to reopen.
Last year, the country recorded 9 617 job losses and 75 company closures.
Political bickering takes centre stage
Economists have called for policy reforms, but it seems there is no political will to do so as political bickering within the ruling Zanu-PF party takes centre stage.
Those who have tried to talk of reforms and act on vices such as corruption have been - rightly or wrongly - accused of using their cabinet positions to further their political interests.
Just last month President Robert Mugabe chided the only minister who has been working tirelessly to bring progress to the country.
Information Minister Jonathan Moyo was called a weevil and devil incarnate by Mugabe. His crime was that of “targeting” fellow party members and exposing them for being corrupt and retrogressive.
With the economy in need of urgent resuscitation, patronage is still the order of the day with politicians who were rejected by the electorate getting a new lease of life as board members of key government institutions, such as Zimbabwe Electricity Supply Authority.
Zimbabwe is in serious need of electricity but under the new board, chances of an improvement are as good as Spain winning the 2014 World Cup.
It is against this background that I am surprised by ZSE's recent good run. Maybe the only bait for those who are buying is the massive potential the Zimbabwean economy has.
- Fin24
On Thursday the ZSE recorded a 1.29% gain, the third-biggest this year. The ZSE last recorded a hike of over 1% on April 24.
From May 19 to June 19 the market recorded 18 gains and only 5 losses.
Sadly, though, economic fundamentals have remained the same with demand for goods and services waning.
Just last month, the country’s biggest retailer and listed entity OK Zimbabwe reported a marginal 0.8% revenue growth, with management saying subdued business activity is expected to continue into a significant part of its next financial year.
Management at one of the listed property companies, Zimre Property Investments, told their latest annual general meeting that total income for the five months to May was down 22%.
Away from the stock exchange, companies are busy retrenching with reports saying a total of 2 065 people lost jobs from January to date.
Zimbabwe Congress of Trade Unions national coordinator Elijah Mutemeri this week said 9 000 people did not return to work in January this year from the December annual shutdown, as employers failed to reopen.
Last year, the country recorded 9 617 job losses and 75 company closures.
Political bickering takes centre stage
Economists have called for policy reforms, but it seems there is no political will to do so as political bickering within the ruling Zanu-PF party takes centre stage.
Those who have tried to talk of reforms and act on vices such as corruption have been - rightly or wrongly - accused of using their cabinet positions to further their political interests.
Just last month President Robert Mugabe chided the only minister who has been working tirelessly to bring progress to the country.
Information Minister Jonathan Moyo was called a weevil and devil incarnate by Mugabe. His crime was that of “targeting” fellow party members and exposing them for being corrupt and retrogressive.
With the economy in need of urgent resuscitation, patronage is still the order of the day with politicians who were rejected by the electorate getting a new lease of life as board members of key government institutions, such as Zimbabwe Electricity Supply Authority.
Zimbabwe is in serious need of electricity but under the new board, chances of an improvement are as good as Spain winning the 2014 World Cup.
It is against this background that I am surprised by ZSE's recent good run. Maybe the only bait for those who are buying is the massive potential the Zimbabwean economy has.
- Fin24