ZSE turnover hits November high

HARARE - Zimbabwe Stock Exchange (ZSE)’s turnover went up 391 percent to $3,757 million on Wednesday, its highest daily turnover since the beginning of November, the bourse said.

Total transaction value jumped to $3,757 million on 6,310 million shares from $764 727 on 17,10 million shares that traded the previous day.

“Significant deals were recorded in Delta where 1,663 million shares worth $1,579 million traded while over 300 000 Econet shares worth $1,539 million transacted during the session,” said ZSE in a statement.
It said while the benchmark index remained 5,14 percent up since January, the resources index was a significant 30,84 percent down this year to date.

Meanwhile, the ZSE remains depressed. Since January, it has failed to attract new listings with only one initial public offer by TN Bank being floated.

The equities market has been dealt a major blow by the prevailing liquidity crisis, while the indigenisation law has dampened foreign investor participation.

Foreign investors are the major players on the market.

The indigenisation law requires all foreign-owned firms to cede at least 51 percent to black locals.

In his 2013 National Budget, Finance minister Tendai Biti said during the first two quarters of 2012, trading on the bourse was generally depressed, but picked up during the third quarter.

He said the industrial index, which started the year at 138,52 points, peaked to 146 points in September 2012.

“Similarly, the mining index, which opened the year at 79,09 points, marginally improved to 96,0 points in September,” Biti said.

The subdued trading on the bourse was also reflected through market capitalisation, which had been averaging $3,4 billion between January and September 2012.

“By October, market capitalisation reached the $4 billion mark implying signs of recovery,” Biti said.
The Treasury chief said government remained committed in ensuring that trades and settlements on the securities market are automated.

“… the Central Securities Depository (CSD) company has been established, comprising 51 percent ownership by government-related entities and Chengetedzai with 49 percent.

“The company is in the process of identifying a CSD system vendor. It is expected that the CSD system will be operational by the first quarter of 2013.”

Biti added that the amendments to the Securities Act will increase the Securities Commission of Zimbabwe’s effectiveness to protect investors.

The Act is being amended to bring it in line with developments that have taken place in the securities sector since promulgation in 2004.

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