The Way I See This

Hello guys...

I have a serious question for you; I know most of you won't be able to answer it and you won't believe it either but I will tell you the question and answer it as well.

Q. Can you guess the only stock market in the world to be rising at the moment?

A. The Zimbabwean Stock Exchange. Yes That is right. Zimbabwe's stock exchange is the only one doing well and in terms of percent it is doing really well.

It broke two records in 2 days. On Monday it broke the single biggest day gain in terms of points and percent. It rose 241% on Monday!

Then on Tuesday (yesterday) it broke the same record. This time it rose by 257%. Some companies saw their share prices increase by up to 3,500%. This is amazing.

Wouldn't you just love that to happen to your stock market? Imagine if even 10 percent of that would happen daily! I would be happen with that!

Well on paper anyways. This is actually only good on paper. The percent seems really high and it seems the economy is doing well. For a fact, it is not. It may be improving but by no means is it anywhere close to decent.

Zimbabwe's economy is staggering amid the world's worst inflation.
Inflation is officially running at an annual pace of 231 million percent. Some experts put it more at about 20 trillion percent. Wow. Can you just imagine that rate of inflation in any one of your countries?

"With the unofficial exchange rate leaping from 30 million Zimbabwean dollars to $1 on Friday to 100 million to the greenback Monday, showing a shortage of cash, people are trying to hedge against inflation by turning to equities." - AP

Wow. 100 million to the dollar. Just wow. They even introduced a 100 million Zimbabwe Dollar (ZWD) note!

History of the Stock Market;

"The first stock exchange in Zimbabwe opened its doors shortly after the arrival of the Pioneer Column in Bulawayo in 1896. It was however only operative for about 6 years. Other stock exchanges were established in Gwelo (Gweru) and Umtali (Mutare). The Mutare Exchange, also opened in 1896, thrived on the success of local mining, but with the realisation that deposits in the area were not extensive, activity declined and it closed in 1924. After World War II a new exchange was founded in Bulawayo by Alfred Mulock Bentley and dealing started in January 1946.

A second floor was opened in Salisbury (Harare) in December 1951 and trading between the two centres was done by telephone. Traders continued working by telephone until it was decided that legislation should be enacted to govern the rights and obligations of the members of the Exchange and the general investing public.

The Rhodesia Stock Exchange Act reached the statute book in January 1974. The members of the Exchange continued to trade as before and it became necessary for legal reasons to bring into being a new Exchange coincidental with the passing of the legislation. The Exchange dates from the passing of the Act in 1974, and is operated and regulated in accordance with it and its amendments, including 1996's Zimbabwe Stock Exchange Act: Chapter 24:18.

On independence from Britain in 1980, the Exchange changed its name from the Rhodesia to the Zimbabwe Stock Exchange." - Wikipedia


NEXT FEW BLOG POSTS;

1. "Zimbabwe is 'the best investment opportunity in Africa' say financiers." - Telegraph.
2. India's unmanned moon mission
3. Early voters in the USA Presidential Elections.

Sahil Bhalla