Harare – The Zimbabwe Stock Exchange rallied in April as investor confidence continues to strengthen in the wake of the country’s change in government.
Since taking over in November last year, President Emmerson Mnangagwa has put economic recovery at the centre of his activities, with most of his engagements speaking to the need to revive and grow the Zimbabwean economy.
In April the ZSE’s main industrials index recorded a strong 13.14% gain to 329 18 points. It is closer to a complete reversal of the losses recorded in the first quarter of the year, when profit-taking saw the market drop by more than 15%.
By close of trading on Friday last week, the ZSE main industrials index was down by just 1.15%, but still up by 130.34% year-on-year.
The ZSE Top 10 index, made up of top companies by market capitalisation, was the major driver in the month and has reversed first-quarter losses after closing the month positive with a 0.26% gain.
Beverages giant Delta Corporation led the upward surge, gaining more than 25% in the month following an upbeat trading update that saw the company recording revenue growth for the first time in four years.
Delta’s group revenue for the year to March 2018 was up 18%, on the back of a 27% growth in lager beer volume for the full year. Sparkling beverages volume increased by 15% for the 12 months.
Investor sentiment has also been positive and this has been reflected during the month with foreign investors, long net sellers, now turning into net buyers.