THE country’s two stock exchanges suffered a significant drop in market capitalisation in February compared to the prior month, as investors remained cautious amid delays in the announcement of a new Monetary Policy Statement (MPS).

The Reserve Bank of Zimbabwe is yet to present the MPS, an important document which central banks use to manage economic fluctuations and achieve price stability, full employment, economic growth, and balance of international payments.

The delay has created high levels of uncertainty in the market.

A report prepared by Fincent Securities showed the Zimbabwe Stock Exchange (ZSE) lost 21% of its market capitalisation in United States dollar terms to end at US$2,4 billion, while the Victoria Falls Stock Exchange (VFEX) shed off 3,16% to close the month at US$1,2 billion.

The ZSE recorded about ZW$103,50 billion (US$7,99 million) of total monthly traded value compared to ZW$110,21 billion (US$8,51 million) recorded in January.

VFEX recorded a monthly turnover of US$4,133 million compared to US$4,132 million recorded in January.

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“The exchange rate is likely to stabilise in March before resuming an upward trend,” the report reads in part.

“This stabilisation is likely to occur shortly after the announcement of new monetary policies addressing structured currency. We also anticipate increased activity on the VFEX in March.”

The ZSE All Share weakened -3,16% over the month with major losses in the Top 15, which waned by -7,70%. Losses in the Top 10 were -4,29%, while the medium cap advanced 14,65%. The small cap strengthened by 26,94%.

Values on the exchanges were mostly weighted on Delta and Econet for ZSE and African Sun and Innscor for VFEX.

According to the report, ART Holdings led the gainers on the ZSE, adding 111,11% value with shares worth over ZW$10,37 million (US$800) exchanging hands over the month.

Meikles was the biggest loser for the month letting go -66,22% of its value followed by Tanganda at -42,31% and Dairibord Holdings (-41,03%), Seed Co (-36,03%) and Ariston (-31,03%).