PILING INTO THE MARKET
Investors looking for bargains should look at Zimbabwe’s bull run
Zimbabwe’s stock exchange may be experiencing the beginning of a bull run. But in an environment of cash shortages, holders of stock don’t want to sell
The bulls are back in town, if the gains recorded on the Zimbabwe Stock Exchange (ZSE) last month are anything to go by. After a depressed first-quarter performance — the mainstream industrial index declined by 3.83% — stocks have made a major comeback. The decision by the Reserve Bank of Zimbabwe to lower rates last year hit banks’ earnings. In addition, uncertainty in the currency market caused by the introduction of bond notes has led investors to take positions in equities. Amid concern over rising inflation, the stock market is proving a safe haven for individuals and asset managers. Just last month, the mainstream industrial index jumped 16.8% to close at 162.34 points, a development that analysts say signals the beginning of a bull run.
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