Old Mutual Investment Group (OMIGZIM) says the gazetted Statutory Instrument (SI) 127 of 2021 under the Presidential Powers (Temporary Measures) has ostensibly caught the market off guard.
The SI empowers the Reserve Bank of Zimbabwe (RBZ) to enforce and penalise offenders of exchange control regulations mainly relating to trading on the foreign currency auction, exchange rates and acceptance of the local currency as legal tender under the multi-currency regime.
Economic agents that misuse foreign currency obtained from the currency auction system, trade at an exchange rate other than the official exchange rate and refuse to accept payment in Zimbabwe Dollars without prior approval from the RBZ shall be guilty of an offence and liable to a fine.
The fines range between ZWL$50 000 and ZWL$1 million.
“Reactions by key industry players point to low business and market confidence in the outlook. The law has seemingly increased market uncertainty, heightened value loss concerns and stirred high inflation expectations,” said OMIGZIM in its latest monthly report.
Meanwhile, the mainstream All Share Index gained 0.34% to 5,697.57 points. The Top Index added 1.02% to 3,113.91 points on cigarette maker BAT which rose 12.50% to 99000.00c.
The Medium Cap Index retreated 0.92% to 14,734.89 points. Hospitality group RTG was the biggest faller after losing 15.22% to 195.00c. NMBZ followed, slumping 10.16% to 1120.00c. Milk processor Dairibord succumbed 9.66% to 2350.84c. TSL lost 4.76% to 4000.00c and completed the top five losers set.
Cable manufacturer CAFCA was up 13.64% to 15000.00c. Hotelier African Sun gained 9.17% to 338.83c. StarAfrica recovered 8.07% to 89.71c.
The Small Cap Index was higher 7.27% to 84,552.69 points. GetBucks led the risers with 17.24% to 511.00c and left its year to date gain at +3988%.
Nickel miner BNC eased 7.13% to 510.00c.
Turnover for the day stood at ZWL$77.09 million after 3.64mln shares traded – Harare