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Harare - The main industrials index of the Zimbabwe Stock Exchange was up by 27.4% in May as investors
continue seek to refuge in real assets, amid a cash
crisis that has seen funds remain trapped in the banking system.
By the close of trade
on Wednesday, the last day of trading in May, the main industrials index was up
0.71% to close at 162.34 points.
The equities rally in May reversed the market's losses
earlier in the year to close trading up a healthy 12.32% year-to-date.
Local investors have been
buying into the equities market as a hedge against currency uncertainties and
shortages.
Most cash-rich Zimbabwean companies and individuals have
been failing to access their cash locked in banks due to foreign currency
shortages.
Businesses, especially
manufacturers and mines, have also been struggling to make foreign payments
since the foreign currency shortages intensified at the beginning of 2016.
The Reserve Bank of Zimbabwe last year introduced a priority
list that is meant to control the use of the scarce foreign currency.
This has resulted in delays in payments to foreign suppliers and foreign investors repatriating their capital gains from trading on the ZSE.
