Zimbabwe Stocks to Rise 17% by End of 2013, IH Securities SaysChris Kay
Zimbabwean stocks, the biggest gainers in sub-Saharan Africa this month, are set to climb 17 percent by year-end if elections scheduled for this year run smoothly, according to IH Securities in Harare, the capital.
The Zimbabwe Industrial Index has increased 18 percent so far this month to 179.34, the best gain across sub-Saharan African bourses, according to data compiled by Bloomberg. IH Securities forecast that total market capitalization will rise to $5.69 billion by the end of the year.
“Intended elections in 2013 present a potential catalyst for positive policy shifts in the country that can stimulate higher and sustained growth in the future, whilst improving foreign investor sentiment,” IH Securities research analysts led by Dzika Danha, the head of research, wrote in a report today. “It was encouraging to note that the contribution of foreign turnover against total turnover continued to trend upwards, rising from 36 percent in 2011 to 41 percent in 2012.”
Zimbabwe’s Movement For Democratic Change, which rules in a coalition with President Robert Mugabe’s party, wants an election to be held in July, Tendai Biti, finance minister and the party’s secretary-general, said Jan. 29. The MDC has shared power with Mugabe’s Zimbabwe African National Union-Patriotic Front since 2009 after a disputed election. The two parties last week agreed on a new constitution that must be approved in a referendum before an election can be held.