The Fear Gap's Back as Dollar Pinch Worsens After Zimbabwe Vote
- Old Mutual’s Harare shares trading at three times London price
- Zimbabweans pile into stock market as hedge against inflation
An election poster for Emmerson Mnangagwa in Harare, Zimbabwe.
Photographer: Waldo Swiegers/BloombergThis article is for subscribers only.
Zimbabwe’s so-called fear gap has returned as the southern African nation’s currency crisis shows little sign of abating six weeks on from disputed elections.
Stocks in Harare, the capital, have long traded above their fundamental value. Zimbabweans are rushing into the market to buy shares as a hedge against inflation, which is accelerating as the government prints a form of money called bond notes in response to a cash shortage.