Zimbabwe Stocks Rise Before Vote in Sign of Investor Unease
- Stocks seen as a way to preserve wealth amid inflation fears
- Political reform important for Zimbabwe’s recovery: Allan Gray
Election posters hang on a wall as people watch MDC-Alliance (Movement for Democratic Change) leader and opposition presidential candidate Nelson Chamisa speaking during a rally on July 26, 2018 in Chitungwiza, Zimbabweans.
Photographer: Dan Kitwood/Getty Images
Zimbabwean stocks are rising before Monday’s election. But in the topsy-turvy world of the country’s equities market, that’s not necessarily a sign of investor confidence.
The Harare exchange’s benchmark index has climbed 10 percent since the election date was set on May 30. The gains suggest Zimbabweans are continuing to use equities as a refuge to preserve their wealth, concerned that there is a risk of inflation as the government prints dollar-denominated bond notes to overcome a shortage of hard currency.