·         ZSE up 7.42% MoM

·         ZSE Top 10 Index buttressing overall growth trend

·         Demand for penny stocks dwindle

Harare - Despite some intense levels of oscillation, the Zimbabwe Stock Market (ZSE) has seen a positive trajectory on a month-on-month basis, with the ZSE All Share Index increasing from 33715.26 points on 17 March 2023 to 36218.95 points on 17 April, 2023. This represents a significant increase of 7.42% in just one month.

The growth trajectory was buttressed by a surge in demand for market heavies which saw the ZSE Top 10 index rising from 19984.56 points on 17 March to 20886.22 points on 17 April 2023, representing a growth of 4.52%. This indicates that the biggest companies on ZSE according to market capitalization have been driving the overall growth.

On the downside, the penny stocks on ZSE saw a slight decrease over the same period, falling from 671319.22 points on 17 March 2023 to 668331.79 points on 17 April 2023, representing a decrease of -0.45%. This suggests that smaller companies may be struggling to keep up with their larger counterparts.

Overall, the market is outpacing ZWL inflation, which serves as a safe haven to investors who seek to preserve value. The increasing demand for market heavies amid a decreasing demand for penny stocks is, however, reflective of lack of confidence in the fundamental growth of companies in the economy at large. However, it will be imperative to keep an eye on smaller companies and their performance in projecting higher returns over the long-term by buying low now.

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