Bond notes fears push ZSE higher

The Zimbabwe Stock Exchange Industrial Index reversed its year to date loss after gaining 1,04 percent to 115.78 at the close of trades yesterday. The stock market was on the brink of registering its third successive year to date loss after closing the third quarter at a negative 13,8 percent but a sudden jump in prices in October has reversed the entire nine months losses.

The ZSE has endured a mostly miserable performance this year, as poor economic prospects continue to cast a shadow on possibility of better returns in increasingly difficult conditions.However, the market has since the beginning of October gained 16,84 percent as some local investors hedge against the imminent introduction of bond notes.

The "surrogate currency" which is expected to start circulating in November is surrounded with a lot of skepticism and as such analysts are of the view that investors have nowhere else better to deploy their funds.The bulk of the money currently getting into the market is from private clients who are now moving into assets as business is stalling due to the failure to import.