ZSE plunge continues

ZSE plunge continues
Published: 18 January 2018
THE Zimbabwe Stock Exchange (ZSE) this week extended a losing streak which began towards the end of last year as the market started to undergo correction following a year-long rally that inflated stock prices.

Last year's bull run was halted by the November end of former President Robert Mugabe's 37 years rule, widely blamed for the country's poor economic performance, characterised by inflation and sluggish growth.

The 2017 market rally was largely attributed to inflation fears, which saw investors seeking refuge in equities following the introduction, in November 2016, of a parallel local currency, the bond note.

The currency stoked fears of the return of a local currency and memories of the Zimbabwe dollar's decimation by hyperinflation, which peaked at 500 billion percent, according to IMF figures.

The All Share index, which was introduced this year, has shed 6,76 percent since the beginning of the year to close yesterday at 96,94 points. The Industrial index has dropped 3,89 percent during the year so far to settle yesterday at 311,37 points. The Top 10 index which was also rolled out this year, has dropped 7,16 percent this year closing yesterday at 92,84 points.

The market's losses during the first 12 trading sessions of the year have been driven by selected heavy-weight counters. British American Tobacco has lost 15,97 percent in the year so far closing yesterday at $30. Telecommunications giant Econet, has shed 10,73 percent to settle yesterday at $0,8227. Financial services group Old Mutual, has eased 10,73 percent to $0,8227. Delta has dropped 1,55 percent to settle yesterday at $1,5752.

The Mining index has lost 5,53 percent during the year so far, closing yesterday at 134,52 points.

The mining index's losses in 2018 have been driven by Nickel miner Bindura Nickel Corporation which has lost 18,12 percent during the year to close yesterday at $0,0452.

Meanwhile, foreign interests in stocks on the local market continue to recover after being depressed for more than a year. Foreigners have been net buyers in 11 of the 12 trading sessions this year with foreign purchases totaling $8,67 million against sales of $4 million equating to net purchases of $4,5 million.
- fingaz
Tags: ZSE,


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