ZSE Weekly Commentary
In the 5-days to Wednesday, the ZSE recorded a posi�ve ou�urn despite oscillatory performance s�mulated by profit-taking induced sell-offs. The mainstream ZSE All Share Index opened the new month of December on a posi�ve note, bu�ressing the posi�ve streak by a further 1.61% to close the week at 191,561.61 points. The posi�ve performance was evenly spun across all the market's main indices. Since the beginning of the month, the ZSE has garnered a mild 0.15% growth, following a strong posi�ve performance in the past 2 consecu�ve months. However, this translates to a loss of -0.5% in US$ terms as the ZWL loses value at a faster pace owing to controversial measures in the 2024 budget announced last week which has weighed on investor confidence. On a year-to-date basis, the ZSE is up 882.68% and 15.4% in nominal and US$ terms, respec�vely.
The US$ denominated bourse, VFEX, sustained a posi�ve momentum in first week of December as policy uncertain�es sent mixed signals ahead of a controversial 2024 na�onal budget. Despite an oscillatory performance, the VFEX All Share Index bu�ressed prior week's gains by a further 2.07% to close at 69.3 points. A total of 7 risers led to an overall posi�ve ou�urn, with Seedco Interna�onal notably gaining 52.24%. On the downside, 2 counters emerged laggards. Barely a week into the new month, the VFEX is up 0.54% while year-to-date losses were trimmed to -27%. An aggregate of US$882,413 exchanged hands on VFEX in the week under review, up from US$629,303 traded in the prior week.
On the currency markets, increased efforts by the Central Bank to curb exchange rate deprecia�on through the control of money supply, borrowing costs and specula�ve currency trading has aided in stabilizing the exchange rate on the formal currency market. At the close of the most recent auc�on trading week, the ZWL shed off -0.65% against the US$ on the Auc�on market to close at ZWL5,827.8 per US$. On the interbank market, the ZWL depreciated by -0.7% against the US$ to close at ZWL5,827.8.