ZSE swings into positive territory

Harare – The Zimbabwe Stock Exchange returned to positive territory for the first time since January 20, 2017 as Zimbabwean investors continue to seek refuge in real assets amid a cash crisis that has seen funds remain trapped in the banking system.

By the close of trading the ZSE’s main industrials index was up 0.51% year-to-date to 145.26 points, a level last seen mid January 2017 when it closed at 145.01 points.

Since then, the ZSE main Industrials index has been in the negative and reached a year low of 134.44 points or 6.99% in the negative.

Dual listed Old Mutual Plc, has been one of the drivers of the recovery and is now up 6.03% year-to-date at US 370.25 cents. The counter is now trading at a 51% premium to its JSE share price.

Other stocks that supported the positive performance year to date are brick maker Willdale up a solid 100% to US 0.5 cents. ZB Financial Holdings continued with its bullish run and is now up 231.86% year-to-date.

Hippo Valley, whose major shareholder is JSE listed Tongaat Hullets is up 26% year to date at US 43 cents.

Pick n Pay’s Zimbabwean partner Meikles Limited, is also among the risers up 15.77% to US 15 cents.

Nampak’s Zim unit Nampak Zimbabwe also managed a 33.33% gain to US 3.2 cents while cement maker PPC is up 20.45% at US 66.25 cents.

Analysts said one of the reasons why investors were buying into the equities market was that they are desperate to find a home for their cash trapped in banks.

“Investment opportunities in the country are limited and stocks have proven to be the easiest option to deploy cash in the bank,” said Walter Mandeya.

“Trying to invest in anything else using a bank transfer will attract a huge premium because no one is prepared to hold excess cash in the bank,” he added.