Zimbabwe Stock Exchange gains 157% in January as local investors seek hyperinflation refuge

By bne IntelliNews February 15, 2024

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).

Related Articles

Johannesburg Stock Exchange eases listing requirements to encourage small caps to stay

South Africa's main bourse, the Johannesburg Stock Exchange (JSE), has amended some listing requirements to make it easier for smaller firms to raise capital and meet compliance costs. The ... more

Equatorial Guinea awards Petrofac $350mn five-year contract centred on Zafiro oilfield

Petrofac has been awarded a $350mn technical services contract by Equatorial Guinea's state oil company to support its operations in offshore Block B when it takes over the asset from ExxonMobil (US) ... more

Namibian community rejects green hydrogen port expansion project serving Germany’s Hyphen

Leaders of Namibia's Nama ethnic group have rejected a proposal by national port authority Namport to expand a facility on Shark Island – a heritage site sacred to the community – to facilitate ... more