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The bulk of the money currently getting into the market is from private clients who are now moving into assets as business is stalling due to the failure to import.

The Zimbabwe Stock Exchange Industrial Index reversed its year to date loss after gaining 1,04 percent to 115.78 at the close of trades yesterday. The stock market was on the brink of registering its third successive year to date loss after closing the third quarter at a negative 13,8 percent but a sudden jump in prices in October has reversed the entire nine months losses.

The ZSE has endured a mostly miserable performance this year, as poor economic prospects continue to cast a shadow on possibility of better returns in increasingly difficult conditions.However, the market has since the beginning of October gained 16,84 percent as some local investors hedge against the imminent introduction of bond notes.

The “surrogate currency” which is expected to start circulating in November is surrounded with a lot of skepticism and as such analysts are of the view that investors have nowhere else better to deploy their funds.The bulk of the money currently getting into the market is from private clients who are now moving into assets as business is stalling due to the failure to import.

Increased activity has also been seen in the property market.It is also believed under the present circumstances to hold on to shares than sovereign paper where there is now a high risk of roll-overs.Overall analysts believe the rally is not backed by solid fundamentals and therefore might be short-lived.

At the close of trades, Delta was up 0,01 percent to 78 cents as the counter remains attractive to buyers in spite of a depressed trading update for its second quarter. The group reported a 6 percent drop in revenue in Q2.Zimplow also gained 0,20 cents to close the day at 2,20 cents.Powerspeed did not trade but the group has indicated that it is working on converting more of its debt to long term as the recent conversion of its $2,5 million debt to long term has had no impact on its balance sheet.

The company’s borrowings are estimatedto be in the region of $6 million and the situation is weighing down the company’s performance.In an interview, Managing Director Hilton Macklin said business is reasonably steady and believes the company can remain profitable despite the general economic difficulties.

In Minings, Bindura put on 0,27 cents to close at 1,65 cents while there was no activity on both RioZim and Falcon counters despite a joint statement by both companies stating that the former had acquired Dalny Mine from the later.Consequently the mining index added 2,13 percent to close at 30,57. — Wires.