Stocks plunge as forex rerates

Stocks gave up gains Friday as parallel market rates came down after Finance minister Mthuli Ncube’s news he had secured a government guarantee backing the value of RTGs and bond notes.
By Friday, the parallel market rates, which had soared to around $1:5, came down to $1:50 by mid-day, triggering a massive decline in prices of goods.
Stocks have been surging after Ncube hinted corporate and individual needed to open new Foreign Currency Accounts, indication investors construed to me the value of the local current and the US unit was no longer the same. This quickly forced investors holding on to local currency to offload cash and near asset class amid fears this would be prone to the vagaries of devaluation being experienced on the local currency.
But the All Share index came off by 3.85% to close the week at 200.29 points. Old Mutual led the shakers with a $2.50 loss to trade at $10.20, PPC was down $0.44 to $1.78 and Innscor traded $0.28 lower at $2.14. Delta also dropped $0.12 to end at $4.24 and OK Zimbabwe lost $0.0890 to $0.35.
Losses were partially offset by gains in Seedco International which added $0.14 to $0.87, Zimplow recovered $0.0445 to close at $0.26 and Nampak was up by $0.0360 to $0.2160. First Capital Bank also increased by $0.0124 to $0.0750 and Unifreight was $0.0060 stronger at $0.0420.