The local bourse fell slightly on Tuesday, with the mainstream index falling 0.03%, but the loss was significant enough to cancel the gains made in the previous session.
On the economic front, enhancing market confidence through reasonable fiscal spending, such as targeted productive subsidies and minimal borrowing, analysts say is necessary to maintain price stability. They also expressed the need for authorities to completely execute structural changes to control current price distortions that harm consumers.
The local currency’s value versus the US dollar in the official market kept falling in September 2022. By the end of August 2022, the unit had dropped from 546.83 ZWL/USD to 621.89 ZWL/USD, a 12.1% decline.
Economic agents are permitted to set prices for products and services at the interbank rate plus a 10% markup, so as of the end of September 2022, the official exchange rate was, in fact, 684.07 ZWL/USD.
At Tuesday’s close, market breadth, however, was positive as 15 gainers were reported compared to 11 laggards. The ZSE All Share Index dropped 0.03% to 13,893.22 points while market capitalisation declined by $5.08 billion to $1.68 trillion.
The Top 10 Index lost 0.68% to 8,206.02 points on Econet, which plunged 5.17% to $85.16.
CBZ, which received the best bank in Zimbabwe award, at the Global Finance World’s Best Bank awards ceremony recently, remained unchanged.
ZB led the gainers, rising 14.97% to close at $92.55. TSL grew 8.32% to end trade at $42.00. African Sun went up by 7.65% to $18.30. Masimba rose to $75.00, notching up 5.93% in the process. Starafrica completed the top 5, climbing up 5.815 to $1.76. The Medium Cap Index gained 1.50% to 30,494.08 points.
Zimplow topped the losers’ chart, declining by 9.52% to close at $13.11. FMP fell to $6.07, losing 6.60% in the process. Ariston slumped to $3.73, recording a 5.96% depreciation.
The Small Cap Index suffered the most, succumbing 1.64% to 485,208.38 points. Fidelity shed 8.33% to end today’s trade at $22.00.
Turnover for the day declined to $115,024,280, going down by 23.86%.
In the derivatives market, the Datvest Modified Consumer Staples ETF gained 0.63% to $1.7324 while the OM ZSE Top-10 ETF rose 0.02% to $5.2347. Also, the Morgan & Co Made in Zimbabwe gained 2.93% to $1.2016. Other ETFs were virtually flat.
Gold prices edged higher on Tuesday as a softer US dollar offset risks from looming aggressive interest hikes by the Federal Reserve.
Spot gold was up 0,2 percent at US$1 651.75 an ounce as US gold futures were down 0,3 percent at US$1 659.80.
The dollar index hit a one-and-a-half-week low taking some pressure off the greenback-priced bullion. Benchmark US 10-year Treasury yields eased but were not far from 14-year highs touched last week.
The dollar index against a basket of currencies dropped 0.82 percent to 112.11. A weaker dollar makes oil cheaper for non-US buyers.
Oil prices steadied in early Asian trade on Tuesday as a weaker US dollar lent support, though rising shale production and fears that stubbornly high inflation could lead the world economy into a recession limited gains.
Brent crude futures rose US$9c or 0,1 percent to US$91.71 a barrel, while US West Texas Intermediate (WTI) crude futures gained US$6c or 0,1 percent to US$85.52 a barrel. – Harare