Omega Ukama 
THE Zimbabwe Stock Exchange (ZSE) gained $338 billion in October to reach a record $1,38 trillion market capitalisation as resurgent inflationary pressures drove demand for equities.
It comes as the local bourse has over the past few years rallied on inflation, with investors favouring real assets.
Inflation increased for the second successive month in October to 54,49 percent, from 52 percent in September, as the ZSE put on 32 percent – its best outturn in nine months.
This follows the ZWL’s depreciation on the parallel market amid foreign exchange scarcity on the central bank’s currency auction system.
It also follows increased global inflation during the month, which saw oil prices hitting a five-year high.
“The escalating trajectory has been fuelled by value chasing as the premium between the formal and parallel currency markets worsens,” Equity Axis said in a recent note.
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