Zimbabwean Blue Chip Counters on a rally

The major blue chip counters in Zimbabwe have been on a rally due to an increased appetite by foreign investors after the passing of the Referendum by the principals in the Unity Government. This is seen as a major stepping stone by the invetsors as it clears most of the sticky issues that have been holding back the much hyped elections which will definitely determine the way for the Zimbabwean markets. Most of the Zimbabwean stocks on the local bourse are undervalued and they have the greater potential for extensive growth thereby rewarding investors with good if not excellent returns. The drafting and  passing of policies and bills in Zimbabwe have led to the shakiness of the market and has brought a lot of uncertanities thereby affecting trade volumes much to a greater extent. Hopefully with the passing of the referendum investors will be pinning their hopes on the relaxation of the terms of the Indigenization Bill which has ripped the mining sector and is heading towards the four only foreign banks in the market.

Econet wireless shares are trading at their all time high of $6.60 per share with BAT also trading at $5.50 per share reaching its all time high also. this is a good sign for the stocks but the question thats on everybody's mind for how long will the rally continue and how are the political and economic conditions going to affect the recording breaking trade volumes in the local bourse.


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ZimAfriFinance