ZSE seen rising further

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THE Zimbabwe Stock Exchange (ZSE) is likely to rally further despite concerns that it is now overvalued, an equities firm has said.
The market gained $90,72 billion in May, stretching its year-to-date gains to 105 percent, with some analysts warning valuations are now too high.
Akribos Research (Akribos), however, says the bourse is likely to maintain its momentum as investors are expected to continue to favour stocks due to inflation fears, especially in the short-term, with the recent promulgation of Statutory Instrument 127 of 2021, which has brought some uncertainty in the market.

“As proven before, perhaps as a self-fulfilling prophecy, the equity market has been a successful hedge against inflation. With the current market capitalisation of the ZSE at more than $660 billion, our pricing forecast indicates a fairly valued market with 13 percent upside potential (real terms) for the local bourse,” Akribos said in a note last week.