The RBZ Governor’s mid-term monetary policy also had an impact on the ZSE.

Analysts reported that anxiety gripped the market as investors awaited the Governor’s mid-term monetary policy and as a result the market traded sideways for the better part of the week.

This week the key industrial index closed at 18 009,64 points. The mining index also plunged, going 37,05 percent down to close at 18 522, 82 points.

On the second day, the bourse maintained the downward trend with the industrial index closing at 14,416.67 points. The mining index closed at 15 982, 28 points.

On Wednesday the industrial index went up by 7,06 percent and closed at 15 845,39 points. The mining index also gained 9,91 percent to settle at 17 110,08 points.

On Thursday there was no movement on both indeces.

Kingdom Bank analysts have however said that the Central Bank’s statement failed to re-establish positive real interest rates that would bring back the long lost glory of fixed income investments and neither did the statement offer any alternative investment market as investors seek to hedge their financial assets against the rampaging inflation.

The ZSE has been the single viable investment option for a number of investors and has been on a bull run since last year.

It only took knocks at times when investors harvested their savings with analysts attributing this to small time chancers who have besieged the ZSE looking for quick funds and not long time investment.
Reserve Bank Governor, Dr Gideon Gono, delivered his monetary policy on Wednesday last week.

Analysts however say the future of the equities market now depends on the outcome of talks, cash availability and survival of companies.
Towards the end of the week there has been optimism in the country that a political settlement was near.

It is believed that this would open up a number of alternative markets that have suffered in the past 8 years of economic challenges.

Since the beginning of the year, the stock market has been on a seemingly unstoppable bull run, fuelled by a well-documented hyperinflationary environment against a backdrop of hugely negative real interest rates.