Harare - The Zimbabwe Stock Exchange (ZSE) has ended 2016 25.84%stronger, a year that most analysts had predicted a double digit negative close.
By the close of trading on Friday, the main Industrials Index was 25.84% firmer at 144.53 points. The mining Index was even better gaining 146.6% to close the year at 58.51 points.
The performance by the main industrials index is better than the negative loss of 29% recorded prior year comparative.
The market gains were also at odds with fundamentals on the ground with most listed stocks reporting declining revenues and profits.
The decline in revenue and profits was forecast by most analysts who went on to predict a negative close for the stock market. True to the forecasts, by end of September, the mainstream industrial index was heading south, having lost 13.83% to 98.96 points amid worsening economic conditions.
The downward trend, however, started to reverse in October as investors turned to the stock market as a safe haven against macro-economic challenges such as the then pending introduction of bond notes as well as tight liquidity conditions which saw the Reserve Bank of Zimbabwe (RBZ) putting restrictions on the movement of money through withdrawal limits and foreign transfers.
Apart from the ZSE, only a few African markets are expected to close positive in 2016 at least in US$ terms.
As at December 23, 2016, the only African markets with year-to-date gains were the JSE up 7.64%, Namibia’s NSX OI up 33.90%, Morocco’s MASI up 30.30% and Mauritius’ SEMDEX up a marginal 0.03%.
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