• Fri. Apr 19th, 2024

NGX, ZSE go crazy amid currency depreciation, inflation and debt

By Stephen Chandisareva

HARARE – The Zimbabwe Stock Exchange (ZSE) has been ranked among the three of the fourteen Sub-Saharan Africa’s (excluding South Africa’s) stock markets that have had positive US dollar returns year to date.
According to the latest African Financials Research report, SSA (excluding South Africa) markets US dollar returns were up 11.9% in January 2024.
Zimbabwe topped the top three lists with a gain of 50.2%, followed by Nigeria at 27.7% and the Seychelles completed the list with a marginal gain of 2.4%.
“SSA ex SA’s stock markets go crazy in Nigeria and Zimbabwe reacting to currency depreciation, inflation and debt. Small free floats magnify movements,” reads the report.
Kenya recorded a 20 year low in US$ terms, according to the report.
Zimbabwe’s currency fell 42% in January.
“February 2024 has seen the Nigeria Naira weaken a further 60% and the Zimbabwe dollar 38%.”
Meanwhile, the mainstream ZSE All Share Index gained 1.71% on Thursday to close at 525,570.76 points. The session yielded 9 gainers and 8 losers.
The Top 10 Index gained the most, up 2.05% to close at 235,643.91 points. The Medium Cap Index was up 0.57% to end at 2,092,048.38 points.

However, the Small Cap Index was flat at 12,626,424.35.
Investors’ wealth stood at $41.49 trillion from 440.83 trillion in the previous session.
A total of 1.26 million shares valued at $3.08 billion were exchanged in 228 deals.
There was bloodshed on the VFEX.

By ETimes

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