[2008-10-13]  ZSE defies global financial crisis
THE Zimbabwe Stock Exchange has continued to defy the global financial crisis, after gains recorded during trading on Wednesday saw the benchmark index breaching the one billion-point.
A number of bourses in many countries are in turmoil following the financial vortex that has gripped the world especially in Europe.
But the ZSE has remained bullish, resulting in the industrial index closing Wednesday’s trade at 1 185 979,90 points.
Economic analysts noted that traders still see the equities market as one of the best markets to invest against the run away inflation in the country.
“In other countries, buyers tend to rush to other lucrative markets when the stocks are down, but in Zimbabwe, the equities have been one of the major performers hence many people still see it as the best market to invest their money,” said an analyst based in Harare.
They said gains on the market have also been pushed by investors rushing to buy shares in retail counters that were granted licences to sell goods in foreign currency.
A number of retail counters on the stock market were granted the green light to sell goods in foreign currency under the Reserve Bank of Zimbabwe’s Foreign Licensed Warehouses and Retail Shops (FOLIWARS).
Retail counters granted the licences that trade on the ZSE include OK Zimbabwe and Redstar.
The ZSE has remained one of the best markets in the world despite the economic crisis the country has been facing over the years.
The bull run on the ZSE came at a time when some markets continue to feel the pinch of the global financial crisis.
International reports say that markets continue to plunge to lower trade volumes. Some of the markets have recorded record low volumes over the years.
In Indonesia, reports said trading was suspended after stocks plunged more than 10 percent early this week.
Trading was also briefly frozen in Russia’s two main stock markets after plunges of more than 11 percent on opening of the markets on Tuesday.



Source: THE CHRONICLE