• Sun. Apr 14th, 2024

Multiple shocks will continue to weigh on Zim’s growth prospects: IMF Staff

ByEconomic Times

Dec 16, 2022

ZSE closes on positive note, up 0.94%

By ETimes

 The upward trajectory witnessed on the local bourse continued on Thursday with a further 0.94% growth.

Today’s performance comes as the International Monetary Fund (IMF) Staff concludes Article IV Mission to Zimbabwe. The IMF Staff noted that the renewed domestic and external shocks are wreaking havoc on economic and social conditions.

“These multiple shocks will continue to weigh on Zimbabwe’s growth prospects,” IMF Staff said in a statement.

It expects the country’s GDP to decline to about 3.5% in 2022. But this is against the treasury’s economic growth projections of 4% this year.

IMF Staff said the currency and price pressures that emerged earlier this year, owing largely to a surge in broad money growth and an official exchange rate that was out of step with market fundamentals, are easing.

“Annual inflation, which had increased to 285 percent in August 2022, has been decelerating since, a trend which if sustained by appropriate policies, would go a long way in anchoring inflation expectations,” it said.

IMF added that economic institution reforms, as well as governance and anti-corruption frameworks, are critical for laying the groundwork for private sector development and inclusive growth.

At the close of trades, the mainstream ZSE All-Share Index (ASI) was up by 139.83 points to 50,835.95 points from 14,878.58 points, while the market capitalisation went down by $66.92 billion to $41.57 trillion from $1.64 trillion in the previous session.

On Thursday, the market breadth was positive, with eight price losers and twelve price gainers.

The Top 10 Index gained 0.94% to close at 8,755.35 points on Delta and Ecocash, which rose 2.70% and 1.04% to end at $251.77 and $35.45, respectively.

On the flip side, BAT lost 0.17% to close at $2875.00.

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Ariston ended the session as the biggest price loser as its value shed 12.47% to $3.40, Axia declined by 7.88% to $86.61 and First Capital Bank added 1.07% to trade at $10.92. This saw the Medium Cap rise 0.48% to settle at 33,887.76 points.

On the other hand, OK Zimbabwe led the losers’ chart by 5.97% to close at $27.97. Zimplow followed with a decline of 2.33% to close at $16.50, while FMP went down by 0.36% to close at $10.00.

The Small Cap Index was off 0.35% to close at 439,214.75 points on GB Holdings, which shed 5.42% to finish at $1.70.

Market turnover improved from yesterday’s $172.63 million to $472.67 million.

Transactions in the shares of Sterling Bank topped the activity chart with 1.14 million shares valued at $289.33 million. Innscor came in second with 292 400 shares valued at $103.35 million.

Morgan & Co Multi Sector ETF added $3.0000 to $24.0000 and OLD Mutual ZSE TOP 10 added $0.3223 to $5.4405. Morgan & Co Made In Zimbabwe ETF and CASS Saddle Agriculture ETF remained flat at $1.1868 and $1.8000 respectively. Datvest Modified Consumer Staples ETF declined by $0.0305 to $1.6000.

TIGERE Real Estate Investment Trust remained flat at $34.0000 – Harare

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