ZSE recovers despite liquidity and geopolitics effects on markets locally and abroad

On Tuesday, local markets showed glimpses of recovery, while, global financial markets exhibited mixed performances amid ongoing economic uncertainties and geopolitical tensions.

Commodity markets reflected investor caution, with fluctuations observed in gold, platinum and Brent crude oil prices.

Locally, the All Share Index (ZSE ALSI) advanced by 1,49 percent to close at 193.64 points, reflecting a year-to-date gain of 11 percent.

The Top 10 Index also saw an increase of 1,84 percent, ending at 191.25 points. Market capitalisation stood at US$2,22 billion, marking a 1,67 percent rise. Notable performers included British American Tobacco Limited, which gained ZiG 800.00 to reach ZiG 8,000.00 and Delta Corporation Limited, adding ZiG 33.94 to close at ZiG 1,349.98.

Conversely, ZB Financial Holdings Limited experienced a decline of ZiG 41.01, settling at ZiG 409.99. These movements underscore the dynamic nature of the local market amid broader economic influences.

Gold prices eased on Tuesday, declining by 0,5 percent to US$2,937.39 per ounce, as investors engaged in profit-taking following recent record highs. The precious metal had previously surged due to safe-haven demand amid concerns over U.S. tariff policies and potential inflationary pressures.

U.S. gold futures also saw a decrease of 0,4 percent, settling at US$2,952.60.

Platinum mirrored this trend, with spot prices dipping by 0,3 percent to US$963.86 per ounce. The slight downturn in precious metals is indicative of market participants reassessing risk amid evolving economic indicators.

Oil markets faced downward pressure, with Brent crude futures falling by US$1.76, or 2,4 percent, to settle at US$73.02 per barrel. This decline brought prices to a two-month low, influenced by weak economic data from the U.S. and Germany, which stoked fears of reduced demand.

Additionally, the impending implementation of U.S. tariffs on Canadian and Mexican imports, set to take effect next week, has added to market apprehensions. The energy sector remains sensitive to geopolitical developments and trade policies, which continue to inject volatility into oil prices.

Overall, Tuesday’s trading sessions across global and local markets were characterised by cautious optimism, as investors navigated a complex landscape of economic data, geopolitical tensions and policy developments. The fluctuations in commodity prices, particularly in gold, platinum, and oil, highlight the sensitivity of markets to both macroeconomic indicators and geopolitical events.-ebsinessweekl