Zimbabwe Stock Exchange lukewarm on ZiG currency debut
The Zimbabwe Stock Exchange (ZSE) witnessed subdued activity last week to Friday 12 of March following the official rollout of the Zimbabwe Gold (ZiG) currency, according to data released today.
This was the first week of trading denominated in ZiG, following the Reserve Bank of Zimbabwe’s 2024 Monetary Policy that phased out the Zimbabwe Dollar (ZWL). The ZSE rebased its indices to 100 points and adjusted stock prices to reflect the new ZWL/ZiG exchange rate.
Low business activity and stock market participation characterized the week as banks transitioned ZWL balances to ZiG and local transactions faced restrictions.
Despite this, the ZSE All Share Index managed a modest gain of 0.39 percent to close at 100.39 points, supported by gains in eight counters against three that fell. Delta Corporation led trading activity with a total market turnover of ZiG112,338.50.
The USD-denominated VFEX All-Share Index also saw growth, rising 1.26 percent to 98.77 points. This increase was attributed to positive performances by counters like Edgars, Bindura, and Padenga.
However, three out of the nine active counters on the VFEX experienced losses, with African Sun leading the decline after dropping 1.67 percent to US$2.95 per share.
Looking ahead, securities firm Platinum Research anticipates mixed trading activity on the ZSE in the coming week as the market adjusts to the ZiG currency.
They expect subdued activity on the VFEX due to competition from other USD-denominated assets and low foreign investor participation.-ebusinessweekly
