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Rush to offload bond notes triggers stocks rally

by Staff reporter
12 Oct 2018 at 07:34hrs | Views
Stocks rallied this week as investors rushed to get rid of cash and electronic balances and took positions in equities after the accelerated devaluation of the local currency triggered by government's announcement last week that the local unit no longer had the same value as the United States dollar.

Equities are generally believed to be a safe hedge against inflation and allow investors to buy a chunk of a company's underlying assets.

Finance minister Mthuli Ncube's announcement last week that corporates and individuals should open new foreign currency accounts was construed to mean government no longer recognised bond notes and Real Times Gross Settlements as equal to the US dollars and triggered a wave of price increases.

Source - Zim Ind