Old Mutual scores as ZSE surges to 11-month high

Harare - 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.

By close of trade on Thursday, the main Industrials index had lifted 3.70 points or 3.17% to 120.39, the highest finish since November 20 2015.

The gains have since reversed losses recorded earlier in 2016 to a year-to-date gain of 4.82% as of Thursday. By the end of September, the market was down by 13.84% year-to-date.

The shares have also rallied to record a month-to-date gain of 21.66%.

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% premium to JSE prices, after adding 1.34% to close at 320 US cents. 

Investors have been piling in on equities ahead of the introduction of bond notes in November, which most Zimbabweans see as a disguised way of introducing the controversial Zimbabwean currency.                                                                                        

The government, however, insists that the introduction of bond notes would be good for the struggling economy.