Latest statistics from ZSE showed October had the highest market capitalisation, turnover value and volume.
Compared to other months, October had the highest market capitalisation of $3,3 billion, with the market performing at between to $2,7 billion and $2,8 billion during the other months.
A local analyst said: “Activity was mainly propelled by the positive performance in October, as investors anticipated the introduction of bond notes in November. The majority of investors are shifting from cash and near cash asset classes to equities. This explains why there has been massive appetite for equities on the local market.”
The indices on the stock market also increased and were at the highest since January. The industrial index, which was on a see saw during the month, closed at 120,82 points. The industrial index represents the companies in manufacturing and other sectors of the economy, while the mining index represents the resources sector of an economy. During October, the mining index stood at 33,76 points, the highest that has been recorded on the ZSE since January 2016.
In May, central bank governor, John Mangudya announced the introduction of bond notes under a $200 million export incentive facility guaranteed by the African Export-Import Bank.
This triggered resistance and panic withdrawals, with banks putting caps on withdrawals.
The bond notes are due to be introduced sometime this month after the government on Monday promulgated legislation that would allow for their introduction.
- Newsday