ZSE shares rally within a policy whirlwind
The Zimbabwean financial market is by nature unpredictable and prone to mood swings with significant bouts of volatility due to spot policy changes. The government has invoked the Presidential Powers (Temporary Measures) Act to freeze all salary and wage increases soon after the volcanic price controls.
Under the new measures, no-one in public and private sector can now raise salaries, wages, rents, service charges, prices and school fees on account of increases or anticipated increases in the consumer price index (CPI), the official exchange rates, or value added tax and duty.
Stock Market Update
The market closed the week on Friday on a high. After firming 7.77% on Thursday, the industrial index surged 12.43 % closing the week at 39 517 679.39 points. The market seems to have been spurred by strong financial results, the easing of price controls and the salary and wage freeze, which is likely to improve company earnings.
Read the full article on the NewZimbabwe.com here.
