STOCKS rose 13,46% in November on the Zimbabwe Stock Exchange (ZSE) as local fund managers preferred non-cash asset classes amid market jitters over the introduction of controversial bond notes.
Shares gained buoyed by strong demand for scrip in the market rattled by the dreaded currency as fund managers exited cash and near-cash positions.
Concerns over the actual value of the recently launched bond notes loom large with the Reserve Bank adamantly sticking to a par value against the American unit.
The mainstream (ZSE) industrial index rose 13,46% in November to close at 137,08 points, while the resources index surged by a whopping 70% to close at 57,41 points in the same month as investors take comfort in mining counters.
Market capitalisation increased from US$3,423 billion from US$3,6 billion.
Equities have been on an upward trajectory since the beginning of Q4.
Marginal gains in shares were also recorded towards the tail end of Q3.
Significant quarterly gains were recorded in Colcom and Masimba, up 100% in the quarter-to- date to close at 37 US cents and 1,5 US cents respectively.
Other notable gains were recorded in Econet up 61% to close at 31,2 US cents, Natfoods and Innscor surged 64,9% to close at 350 US cents and 38 US cents respectively.
Delta rose 40,01% to close at 84 US cents. BAT was 39,35 in the same quarter to close at US 1,7 cents.
Analysis of the ZSE figures shows that growth on a year-to-date basis was marginal with shares rising fast in the last quarter.
The ZSE has been rising since late September as fund managers rushed to liquidate cash and near-cash positions.
Fund managers and other local investors have been targeting companies with great fundamentals and strong business models such as Delta and Econet as safety nets amid uncertainty over bond notes. Other smaller counters with good fundamentals have also benefitted from the renewed interest in shares across the board.
Meanwhile, confusion reigned supreme as street dealers were at bay on the value of bond notes in the first few days of its launch with many expressing security fears.
Most dealers say they are playing it safe for now amid fears state security agents could clamp down hard on dealers if they discount the value of the unpopular unit.
Analysts say dealers could start discounting the bond note as the new currency floods the market. Several banks were this week dishing out bond notes to customers seeking cash. Analysts say this could create strong demand for the US dollar going forward and lead to a discounted rate going forward.