Stocks surge to record highs as investors rushed to dispose of cash

Stocks surged 18% Thursday as investors rushed to get rid of cash and near cash asset classes amid fears the local currency will lose further lose value against the US dollar after government’s pronouncements to close at a historic valuation of $23 bn.
Total market jumped 18.07% Thursday to close at over $22 bn, the biggest jump as panicky investors bought at extremely high prices and worrying valuations.
Fears government would not recognise the local currency as equivalent to the US unit spooked investors after Finance Minister’s Mthuli Ncube’s announcement corporates and individuals should open foreign currency accounts. This was construed to mean that government no longer considered the current balances as non US accounts, triggering concern savings and investments and near cash asset classes would be wiped off again after another hyperinflation a decade ago.
Zimbabwe adopted the US unit in 2009 after a hyperinflation eroded value.
The mainstream all share index jumped 18% on the same day to close at 203.3 points while the industrial index closed at 699 points, up 17.9%.
Investors threw caution to wind this week and bought big caps at high prices as the race to preserve value gathered storm.
Investors spent a total $32 mn from yesterday figure of $20 mn.
On Tuesday investors spent $9.5 mn.
A weakening local currency against the US dollar triggered a massive interest in equities.