As Zimbabwe tanks, its stock market moves up – FT

Emerging and frontier stock markets have been battered this year, with one unusual exception: Zimbabwe’s MSCI index was up more than 90% for the year.
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EDINBURGH — Zimbabwe is an economic mess, with food, medicine and money shortages. Jobs are scarce, too, in a country in which underground currency trading is rife and the government has lost its grip on inflation. Gary Kleiman, an analyst on banking and securities in emerging markets, has assessed the situation in Zimbabwe. He points out how the stock market has shot up, even though the economy has tanked. This is because Zimbabweans have been looking for places to preserve wealth. The eye watering gains have failed to attract international investors, who remain concerned about the broken promises to restore Zimbabwe to democracy, clean up on corruption and protect asset ownership rights. – Jackie Cameron

By Thulasizwe Sithole

Emerging and frontier stock markets have been battered this year, with one unusual exception: Zimbabwe's MSCI index was up more than 200% in early October and is still up more than 90% for the year, thanks to local investors desperate to preserve the value of their savings, says Gary Kleiman in the Financial Times.

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