Zimbabwe Stock Exchange to Advance 34% This Year, Invictus Says

Zimbabwe stocks may gain 34 percent this year as national elections will result in more business-friendly policies that spur greater foreign investment into the country, said Invictus Securities.

The market value of the Zimbabwe Stock Exchange will increase to $5.1 billion for the current $3.8 billion as foreign investors buy well-known larger companies as part of a “flight to safety” before the elections, Invictus Securities said in an e-mailed note to clients. After the ballot investors will look for value among mid-tier stocks, the analysts said.

Zimbabweans approved a new constitution to set up fresh elections later this year that will pit President Robert Mugabe against his longtime rival, Prime Minister Morgan Tsvangirai. The two have shared power in a coalition government since 2009. Zimbabwe holds the world’s biggest platinum and chrome deposits after South Africa and also has coal, diamond and gold reserves.

“Regardless of the outcome of elections we firmly believe that the new government will adopt a more investor friendly approach in order to raise much needed capital for expansion and job creation,” Invictus analysts said in the report. The poll provides “a good opportunity to demonstrate that the country is maturing as a democracy and is rapidly become a more attractive investment destination,” the analysts wrote.

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