Published: 27 July 2013

The Zimbabwe Stock Exchange (ZSE) is now ranked fourth in Africa in terms of weekly turnover due to a rebound in trading conditions.

A report released by the African Association of Stock Exchanges shows that the growth in the ZSE market capitalisation has resulted in the local bourse being ranked fourth after Nigeria, JSE of South Africa and Nairobi Stock Exchange.

Out of more than 60 markets within the continent, the ZSE has defied market expectations by registering a massive growth in the industrial index and total shares despite funding challenges.

The report shows that foreigners are dominating the market by contributing 61 percent of buyers while local investors are mainly on the selling side due to low disposable incomes and savings.

The industrial index has registered a 38.1 percent growth from 152.4 points in January to 223.58 points as at June 28 this year.

Market capitalisation, which was at US$3.96 billion in January this year, reached the US$5 billion mark in May and closed at US$5.3 billion by June 28.

ZSE commentators say while the statistics show positive growth for the local bourse, most of the listed counters are, however, struggling due to lack of working capital and their inability to meet requirements for listed counters.
- zbc

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