Investors scurry for safety after Mangudya technically disowns currency

Investors scurried for safety in stocks a day after the central bank’s monetary policy amid concerns over mounting inflationary pressures emanating from a decision to technically devalue local currency balances.
The order by the central bank Monday to the central bank to create separate Foreign Currency Accounts for both corporates and individuals was seen as an admission that the money in circulation is no longer US dollar denominated.
This comes after Zimbabwe, which adopted the US dollar in 2009 after hyperinflation wiped off the value of the local currency, introduced a currency, bond notes, it claimed had the same value with US dollar two years ago.
The mainstream All Share index reported its biggest gain since January, posting a massive 5.09% jump Tuesday to close at 122.07 points points in a trading session mainly dominated by movers in heavy weight counters.
Telecomms giant Econet added $0.24 to close at $1.55 and Old Mutual was $0.11 stronger at $5.46. Meikles and TSL both increased by $0.0500 to settle at $0.45apiece. Delta also traded $0.0481 higher at $2.25 and Padenga was up $0.0464 to $0.6664.
CBZ was the only lame duck as it lost $0.0020 to settle at $0.1480.
Investors are seen piling into equities further as inflationary pressures mount and those holding on to balances rush to buy securities denominated in local currency.
The local unit is trading at discount to the US dollar already and is seen giving up additional gains.