ZSE Market Commentary 09 April 2024
ZiG in marginal appreciation as ZSE registers just two trades
HARARE – Zimbabwe Stock Exchange shares saw cautious trading for the second consecutive session on Tuesday as the transition to local currency continues to restrict the flow of funds into the market.
Only two stocks traded. EcoCash rose 14.87% to 32.65 ZiG cents and Star Africa was the standout performer after putting on 35.25% to 1.35 ZiG cents. A total of 21 000 shares worth ZiG 53 441 traded.
The rebased All Share Index was 0.64% higher to 100.87 amid optimistic and pessimistic readings and expectations of the new currency regime. The ZiG firmed against the US dollar to 13.53 from 13.56 at the start while alternative market transfers are on 14.
Meanwhile, the Reserve Bank of Zimbabwe has issued Exchange Control directive RZ56 of 2024, which operationalises the foreign exchange policies and facilitates the introduction of the new currency regime.
Of concern to companies on provisioning, would be the conversion of all outstanding auction allotments into a two-year ZiG denominated investment instrument at an interest rate of 7.5% per annum. This expunges the foreign exchange obligation and liability from the RBZ.
All outstanding payments for foreign exchange purchased by Treasury under the 25% surrender will be converted using the prevailing exchange rate into a ZiG denominated investment instrument with a tenor of one year at an interest rate of 7.5% per annum.
Purchase of foreign currency by importers under the willing buyer willing seller market will strictly be to fund external obligations.
The Reserve Bank of Zimbabwe has made special arrangements for those without bank accounts to swap ZWL notes and coins at POSB and AFC Commercial Bank within 21 days after April 5.
On the VFEX, the All Share was flat at 97.38 after newly listed Edgars rose 0.68% to 1.48 US cents. Turnover was moderate at US$128 156 after 363 980 shares traded. The biggest turnover contribution was seen in Simbisa at US$100 595 on volume of 287 158 shares.-finx