THE Zimbabwe Stock Exchange (ZSE) today introduced an Agriculture Index and Exchange Traded Fund Index (ETF).
The base for the two indexes will be 100 points.
Indices allow investors to gain an insight into the performance of an asset class or a segment of that asset class. Index based instruments enable investors to gain exposure to the breadth of instruments making up the index in one transaction.
The constituents of the agriculture index include Ariston Holdings Limited, British American Tobacco and CFI Holdings.
The Traded Fund Index is made up of Datvest Modified Consumer Staples, Morgan & Co Multi Sector and Old Mutual ZSE.
This is of benefit to investors with a bearish view on an index or investors with an existing portfolio that tracks the index and they require a means of hedging the portfolio against an adverse movement in prices.
Previously there were four indices making up the headline series – the ZSE All Share Index, the ZSE Industrial, the ZSE Mining and the ZSE Top 10.