ZSE Weekly Commentary

The ZSE sustained a bull-run in the 5-days to Tuesday, climbing to a new all-�me high as demand for safe-haven firmed amid a ZWL hyperinfla�on as well as a rampant exchange rate deprecia�on on both the parallel and interbank market. The mainstream ZSE All Share Index surged by 10.77% to close at a record high of 795,094.49 points. The posi�ve performance was spun across all the market's main indices as ac�vity on ZSE notched up. Overall year-to-date gains scaled up to 277.12% in nominal terms, which converts to 8% in US$ terms amid a heightened exchange rate deprecia�on on interbank market. On a month-to-date basis the ZSE is up 51.28% and 5.8% in nominal and US$ terms respec�vely.

The US$ denominated bourse, VFEX, registered an astounding performance in the week under review, reversing losses to close at a posi�ve year-to-date posi�on as reduced currency risk posi�vely impacted investor sen�ment. This follows a slow-down in exchange premium to below YTD average. The mainstream VFEX All Share Index gained 3.17% to close at 100.26 points, which is 0.26% up YTD. The All Share Index was rebased to 100 at the beginning of the year to account for the six lis�ngs in 2023. On a month-to-date basis, the VFEX All Share Index is up 1.7%. An aggregate of US$564,614 exchanged hands on VFEX in the week under review, up O fr on m th U e S c $ u 1 r 9re7n,0c6y1 m traardkeetds , i na trheecepnret v � ioguhstewneinegk . of the money supply has resulted in reduced ac�vity on the parallel currency market, allowing the interbank exchange rate to close in on the gap. The exchange premium has shrunk from 86% in January to a circa 30%. Meanwhile, the Auc�on market remains suspended since late last year as the government seeks to revise the opera�onal model in a bid to stabilize exchange rates. However, at the close of the most recent auc�on trading week, the ZWL shed off -0.65% against the US$ to close at ZWL5,827.8 per US$. On the interbank market, the ZWL depreciated by -11.15% against the US$ in the week under review to close at ZWL21,321.