RBZ maintains rates as stock market rebound continues

At its latest meeting the Reserve Bank of Zimbabwe (RBZ)’s Monetary Policy Committee (MPC), resolved to maintain the bank policy rate and medium-term lending rate at current levels of 200 percent and 100 percent, respectively, until durable stability, measured by a sustained decline in month-on-month inflation to desired levels of less than 5 percent, is attained.

The MPC also said it will further liberalise the foreign exchange market by increasing the maximum amount that entities can purchase from banks for bonafide foreign payments under the willing-buyer willing-seller system from the current level of US$20 000 to US$100 000 per week per entity.

Latest foreign currency auction done yesterday saw the exchange rate close at $624.53 to a dollar from $613 previous week.

A total of US$11 million was apportioned with the main auction taking US$9,5 million with a total of 233 bids being made while 15 bids were disqualified.

This left 218 bids being allotted.

On the stock market, its rebound continued on Tuesday with the ZSE All Share index adding 9,87 percent to close at 13 825.66 points.

Top gainers were led by BAT Zimbabwe, which rose by $357.05 to $2 737.55, Innscor increased by $35.10 to $269.25 and Delta was $29.15 higher at $223.65. Simbisa gained $19.40 to $149.05 and Hippo added $17.01 to close at a price of $207.01.

Losers were recorded in First Mutual Holdings, which dropped $2.44 to $16.56, ZIMRE Holdings contracted $0.48 to $5.02 and National Foods was $0.24 lower at $1 095.13. National Tyre Services and Getbucks remained flat at $13.00 and $17.55 among other counters.

In the exchange traded funds market, Morgan & Co multi-sector ETF, went up by $0.77 to $28.50, Old Mutual ZSE TOP 10 gained $0.49 to $5.19 and Datvest Modified Consumer Staples ETF increased by $0.02 to $1.51.

Morgan & Co Made in Zimbabwe ETF remained unchanged at $1.30. Cass Saddle Agriculture ETF shed $0.20 to settle at $1.8.-ebusinessweekly