The Zimbabwe Stock Exchange (ZSE) extended its losing streak today with the primary indicator, the All-Share Index shedding 0.12 percent as investors remain pessimistic of the outlook following a gloomy projection of the global economy by an International Monetary Fund (IMF) top official this week.
The institution sees a “potential confluence of calamities” befalling the global economy, casting a melancholic picture on what has already been a challenging journey to date as policymakers and business leaders gather at the World Economic Forum (WEF) Davos, Switzerland.
In a blog post heralding the WEF, IMF Managing Director Kristalina Georgieva said the global economy faces its “biggest test since the Second World War,” with the Ukraine crisis combined with the outstanding economic effects of Covid-19 pandemic that threatens growth and pushing up prices, the outlook is gloomy.
Already the IMF, in April slashed global GDP growth for the year to 3.6 percent from 4.4 percent predicted in January. The institution had initially set growth target for the global economy at 6.1 percent.
Global financial markets are looking jittery with sentiment hitting its lowest ebb in decades. On the ZSE, there has been a bloodbath in recent weeks following the abrupt policy pronouncements by President Emmerson Mnangagwa on the increase of capital gains tax to 40 percent on shares held for less than 270 days.
To add more problems, is the unpredictability of the local currency which has been on a free-fall and failure by authorities to instill confidence in the market through is inconsistency in decision making.
The IMF expects Zimbabwe’s economy to still grow albeit at a slower pace at 3.5 percent in 2022.
Market breadth remained negative with 14 winners compared to 19 losers.
Lafarge cement was the biggest gainer, moving up 14.38 percent to $ 175. Willdale firmed 14.12 percent to $ 3.2. Agro-industrial concern, Tanganda was 9.92 percent stronger at $ 241.8071 as Nampak Zimbabwe Limited also appreciated by 7.59 percent at $ 17.
On the losers pack, Zimplow shed 9.18 percent to settle at $ 21 as blue-chip stock Axia and Meikles depreciated by 9.09 percent to $ 103.2353 and 6.38 percent to $ 176, respectively.
All the major indices pointed south wards although analysts say the “rough patch” could soon be over given limited options in viable asset classes.
Market capitalization dropped from $ 2.572 trillion previous session to $ 2.569 trillion by end of today’s session.
Turnover however nearly doubled from $273.7 million to $ 424.6 million reflected by growing sales by foreign investors of $ 18 million today.
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