Big caps drove recovery on the Zimbabwe Stock Exchange (ZSE) in January 2024 with the all-share index rising 157% to close at 542,744 points.

Against the backdrop of a looming currency crisis, the stock market rally signals investors continue to brace for an inflation spiral and seek a hedge to protect the value of their money.

The local currency has lost about a third of its value against the US dollar on the official market so far this year and more than 40% on the streets of Harare. Zimbabwe is considering linking its exchange rate to gold and creating a currency board, as it continues a 20-year battle to stabilise its depreciating currency.

The Securities and Exchange Commission of Zimbabwe (SecZim) report for January, Business Weekly wrote on February 14, highlights that the top 10 index increased on the local currency-denominated bourse by 173% to close at 246,210 points.

“The largest company on the Zimbabwe Stock Exchange by market capitalisation, Delta [an alcoholic and non-alcoholic beverages manufacturer], gained 179% during the month under review to close at Z$9,796,96 [about $0.97 based on the January 31 exchange rate],” reads the report.

Significant gainers across that month included British American Tobacco and tea grower Tanganda.

On the greenback-based Victoria Falls Stock Exchange (VFEX), the SecZim report said pan-African hybrid seed supplier SeedCo International gained 11.63% to close at $0,34, crocodile meat and skin exporter Padenga 5.28% ($0.18) and gold miner Caledonia Mining Corporation, which is also listed on AIM and the NYSE, 2.16% ($16.55).