Economy sneezes as Mugabe wins

HARARE - Zimbabwean stocks yesterday lost more than $650 million in value after plunging 11 percent to close at 205, 57 points, on its first trade following President Robert Mugabe election victory.

The Zimbabwe Stock Exchange (ZSE), valued at approximately $6 billion, has been largely driven by foreign investor participation.

It saw its top 10 counters trade in the red except insurance giant Old Mutual (OM).

Economic experts warn that the stock market slump is the clearest sign yet of how jittery the business community is about the Zanu PF win, whose economic policies are centred on the indigenisation of foreign-owned companies — essentially forcing them to cede majority control to local blacks.

Beverages manufacturer Delta Corporation — ZSE’s biggest company with nearly $2 billion market capitalisation — dropped 20 percent to trade at $1, 20 a share.

Diversified conglomerate Innscor Africa Limited shed $0,15 to trade at $0, 90 while telecommunications group Econet Wireless

Zimbabwe dropped $0,10 to trade at $0,58.

Hippo retreated $0,5 to $1,00  while clothing giant Edgars and retail chain group OK Zimbabwe) came-off $0,4 cents each to close at $0,10 and $0,26 respectively.

Only two counters traded in the positive territory; Zimre Holdings Limited advancing $0,20 to trade at $0,014 cents and OM marginally up $0,03 at $2,42.

The mining index shed 2,01 percent to close at 65,00 points with AIM-listed Mwana Africa plc subsidiary Bindura Nickel Corporation trading lower at $0,023.

Falcon Gold, Hwange Colliery Company Limited and RioZim were unchanged at previous trading levels.

Former Finance minister Tendai Biti in his mid-termfiscal policy review statement, said the ZSE had defied all market fundamentals and continued to register positive growth.

“This has resulted in the local bourse being ranked fourth in Africa by weekly turnover, after Nigeria, Johannesburg Stock Exchange and Nairobi Stock Exchange and third by year to date return after Ghana and Uganda as at May 31 2013,” Biti said.

Blue-chip counters such as Delta, Innscor, Econet and OK have become a haven for foreign investors due to their low risk profile and liquid nature.

This comes as investors earned a 40 percent return on the equities market in the half year to June 2013 despite numerous challenges, key among them an acute liquidity crisis.

According IH Securities (IHS), the bourses total market capitalisation advanced 36,64 percent during the period under review to $6 billion.

The financial advisory firm returns from other African exchanges were; South Africa minus 4,46 percent, Nigeria 26,10 percent, Kenya 25,40 percent, Mauritius 8,10 percent, Botswana 11,17 percent and Zambia 20,32 percent.

African Development Bank (AfDB) president Donald Kaberuka said investors needed clarity on the country’s direction.

“International investors need to see predictability in Zimbabwe before they commit themselves more fully to the country. Zimbabwe cannot afford another long period of uncertainty - the country has lost out for a decade,” he said.

“I would hope the government would put in place policies which are predictable and create certainty.”

Zimbabwe’s economy initially projected to grow five percent in 2013, is expected to grow by a mere 3.5 percent, with uncertainty expected to further dampen the economy’s growth prospects. - With Reuters

Comments (25)

Tonga henyu vamugabe woyee kusvika madhongi ameranyanga mozotipawo isu mayouths kana maneta. Handiti makati you will complete your term. ticha kubvunza kaharawa iwe. vakuru vakati ushe madzoro wani unoti vanopenga sewe here?

EARTHQUAKE31JULY - 6 August 2013

Tonga henyu vamugabe woyee kusvika madhongi ameranyanga mozotipawo isu mayouths kana maneta. Handiti makati you will complete your term. ticha kubvunza kaharawa iwe. vakuru vakati ushe madzoro wani unoti vanopenga sewe here? Tchakubvunza kuti muripi nhai vagotsi papata economy yagara pasi seharawha yatyoka musana nekuchembera

EARTHQUAKE31JULY - 6 August 2013

Zimbabweans are very thick. How can civilian parties like MDCs win against the might of the ZanuPF military, police and militias running amok in the countryside days and weeks before the mock elections? Civilian partiess will never win against the military dictatorship. Is this not obvious? How many times have the MDCs tried and failed? They should have informed Sadc, Mbeki, AU, UN, EU way back in 2008 after the violent election that Zimbabwe was under the grip of a ZanuPF military dictatorship but they didn't. The miltary can do as they please with the connivance of the police and militias to intimidate voters.

Chin - 6 August 2013

the zimbabwe story is a sad story. literacy rate +90% but then why????? I think other regional leaders are jealous of what we can become if we are really given the chance. I don't think sadc and au are sincere with their thumps up to this election conduct. what on earth made bob confident of winning.

fadzi - 6 August 2013

+90% literacy rate but come election they cant put an X they need someone to assist them

chatunga - 6 August 2013

even a human being sneezes, rubbish.

reason - 6 August 2013

Ndatenda

nathaniel - 6 August 2013

The notorius NIKUV International projects has an office here. Will be interesting to know what is there business here Zimbabwe Office 13, Mount Road, Avondale, Harare Email: ron@nipzim.com Tel: +2634334465 Fax: +2634332904

Watikiritai - 6 August 2013

Reality is now setting in those election promises are now coming to reality .The stock exchange is now showing you who is the boss ,this economy is going down weather ZANU likes it or not .That MANIFESTO that MUGABE was boosting about them indeginising everything was a dream they chewed more than they could swallow.lNTERNATIONAL INVESTERS are not going to stand for this rubbish.This is just the tip of an iceberg more economic problems are on the way.

CASHTALK - 6 August 2013

takambozvireva hezvo zvatanga lets just sit back relax and watch tione kuti 51% yacho inoshandei macompany avhara

jahjoe - 6 August 2013

takambozvireva hezvo zvatanga lets just sit back relax and watch tione kuti 51% yacho inoshandei macompany avhara

jahjoe - 6 August 2013

Ndatenda vana vamwari nekuti maonawo zvatiri kuona kwete mamwe mapofu asingaone imi maona vamwe wose vakabatwa nedima. asi ini shoko rangu ngerekuti gore rino pakakasaitwa mari-run gore rino hakudyiwe rinopisa munyikaino.tiudzireiwo bofu rinozi madhuku kuti hapana wayfoward kana pasina new election gore rino.uye tizoda kuti munhu vese anechitupa avote nechitupa chake hatidi zveregistration so longo unechitupa and ZEC MUST BE disbanded with the immediate effect we machurch imi ndimi muchawerenga voti kana vamwe vanhu vedzimwe nyika kwete vanhu vanokara mari samakarau kudarika upenyu hwevanhu ne magenerations achauya anenge achingochema neve makarau tikakubata tikamutocha anotiudza chaiizvo izvo zvaiitika

DOFO - 6 August 2013

Ndatenda vana vamwari nekuti maonawo zvatiri kuona kwete mamwe mapofu asingaone imi maona vamwe wose vakabatwa nedima. asi ini shoko rangu ngerekuti gore rino pakakasaitwa mari-run gore rino hakudyiwe rinopisa munyikaino.tiudzireiwo bofu rinozi madhuku kuti hapana wayfoward kana pasina new election gore rino.uye tizoda kuti munhu vese anechitupa avote nechitupa chake hatidi zveregistration so longo unechitupa and ZEC MUST BE disbanded with the immediate effect we machurch imi ndimi muchawerenga voti kana vamwe vanhu vedzimwe nyika kwete vanhu vanokara mari samakarau kudarika upenyu hwevanhu ne magenerations achauya anenge achingochema neve makarau tikakubata tikamutocha anotiudza chaiizvo izvo zvaiitika

DOFO - 6 August 2013

Zimbabwe ndiyo yatomuka manje, musazvinyepere henyu maMDC. Kana marwadziwa neZimbabwe endai britain, america, australia, chero pabotswana paIan apa hamadzenyu dzinokugamuchirai nemawoko maviri. Zvino munochemei. Hamadzenyu dzinochemera Zimbabwe, imi mochemazve. Mbwa dzevanhu

tk - 6 August 2013

RIGHT NOW NOT ONLY IS THE ECONOMY IN THE RED BUT THE NEWLY VOTED CONSTITUTION IS SERIOUSLY UNDER THREAT. ALL THOSE LIMITED PRESIDENTIAL TERMS, DUAL CITIZENSHIP. THOSE HUMAN RIGHTS, AND FREEDOMS. GOD SAVE US

Getrude - 6 August 2013

The worst is yet to come more refugees in South Africa for Jacko Zuma.

Headache - 6 August 2013

The markets can react in this not only to the unpredictability or lack of trust Zpf polices/win but in consideration or potential unsettle meant due MDC and western governments reaction to the results. This is not only a reflection of Zpf but the broader issues and including past history. Which may be correct or just precautionary

Kar - 6 August 2013

iwe unonzi reason hauna kana nyaya. urikupopota chii kana makahwina zvesure. Manje vekumusha vakabvuma kushandiswa ndivo vachamama. Vachati baba nemuridzo.

zvichapera - 7 August 2013

hatisikuzombonamatira kupiwa leadership yengochani muZimbabwe kwete let those westenites be against us rather than to be against God. Mwari wedu anotichengeta basi

murevi - 7 August 2013

it is really really mind boggling to say the least that anyone finds it difficult to accept that mugabe won the election free and fair..some of you where not even on the campaign trails to.. my team and my self where there..we saw we observed and honestly mdc lost the election convincingly..i work for a think a tank and if called to task i will substantiate my claims with cold hard facts..truth of the matter is the strategy to remove an intelligent man with a fool has failed..CIA report.. so zimbabweans get togethr and rebuild your country..we watching you..congrats mugabe

Dr Thobekile - 7 August 2013

@Dr Thobekile, which outer space planet did you come, from to say your team and yourself were there in Zimbabwe at the polling stations as observers and saw a free and fair election and that convincingly Mugabe won? For you to say that Mugabe won credibly boggles the mind and is unbelievable because I was there too at the polling stations as an observer, and my team and I witnessed blatant rigging , in daylight, right in front of our eyes, and saw ID's of dead people being used to vote , and I saw people being bussed to vote and these people were not on the voters' roll either and I live , eat , work, sleep in Zimbabwe day in day out , unlike you who comes from outer space and say, "Oh it was a credible win ! ! ! I also saw ballot stuffing right under my nose ! ! ! @Dr Thobekile, go back to your outer space planet where you came from, and do not tell us local Zimbabweans to accept theft of votes by rigging ! ! !

Kunyepa Lies - 7 August 2013

Dr Thobekile you are well feed by Zanu pf and thus why you don't think. Kuzozvitiwo DR? You know the reality that people were intimidated and most of them voted under duress. How can soldiers run in the streets before election whenever there are elections? How can Zanu give people a tea spoon of sugar and $50 each in most of the rural areas. The truth is this country as long as its leaders are possessed by the spirit of stealing, annihilation… the economy will never boost. Imagine with all these natural resources we are all crying… Where is the money going? Only ministers are protruding bellies while the majority is suffering. We have been tired of the ZANU colonizers. This time muthu muthema ndiye wacolonizer weganda rake. HEIIIIIII.

Temba - 7 August 2013

@Dr Thebokile, let us tell you that in Zimbabwe , if you are a ZANU PF politician , you can steal state money and pocket it and buy businesses with stolen money and it is considered legitimate. In 2008 over 200 MDC-T supporters were murdered by ZANU PF politicians and it is considered legitimate, in 2013 polls were rigged by a fraudlent voters' roll and votes were stollen to give 61% win by ZANU PF and it is considered legitimate. The crime of stealing of state funds is considered legitimate. Newton Kachepa and a woman called Aquillina from ZANU PF party killed some MDC -T supporters in their constituances and it is considered legitimate. Vote rigging in Zimbabwe is considered legitimate as long as you belong to the ZANU PF party and if you commit a crime of theft in Zimbabwe and if you are ZANU PF you are untouchable and blameless and your crimes are considered legitimate. So maybe in your country you are also like ZANU PF, that is why you are legitimising stollen votes by ZANU PF and that is you are saying the election was won legitimtely.

Abuskegny - 7 August 2013

Anything artificially inseminated will die a natural death. If u MDC Tea loyalists and your Western allies merge to doom Zimbabwe, this time u will not win. Zim is to transformed into bread basket of Afrika muchida musingadi. Puuu dhoti MDC

Puuuuu MDC - 7 August 2013

One can write as much as one wants one thing is for sure its not the people of this country that will achieve change in this country no matter what they try and do. Maybe we looking for a David to see if he can deal with Golliath.

little one - 7 August 2013

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