(Bloomberg) -- Share prices are rising so rapidly on Zimbabwe’s main stock exchange that the bourse is increasing the maximum move allowed in a single day.
A new daily limit of a 15% move in the all-share index — up from 10% — will be implemented from Monday, Justin Bgoni, chief executive officer of the Zimbabwe Stock Exchange in Harare, said by phone Friday. Circuit breakers halted trading on the bourse on three consecutive days this week. “It’s in response to the recent activity,” he said.
Zimbabweans frantically trying to protect their savings from a collapsing currency have driven the country’s main stock index up by 760% this year. Traders in the capital, Harare, have said they expect the surge in prices to continue because there are few alternative assets for locals to buy.
The latest share-buying frenzy has pushed the combined value of the Harare market to around $2 billion, still only about half the level it maintained from 2016 to 2022, according to Harare brokerage IH Securities, suggesting there is scope for more gains.
Zimbabwe this week liberalized its foreign-exchange market in an effort to stabilize the currency, which depreciated by 60% against the dollar in May alone. The central bank also raised its benchmark interest rate — already the world’s highest — to 150% from 140% in response to inflation that hit an annual rate of 86.5% last month.
READ MORE: Zimbabweans Drive Stocks Up 600% to Dodge Currency Crash
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