ZSE continues on downward trend

HARARE - Zimbabwe's equities market continued on a downward trend yesterday with the benchmark industrial index shedding 2,5 percent to close at 191,11 points.

The bourse’s market capitalisation fell to $4,9 billion from $5, 05 billion — a development analysts say denoted investors’ worry over President Robert Mugabe’s July 31 election victory.

Last week, the market’s capitalisation contracted by nearly 16 percent, losing close to $1 billion.

This comes as the Zimbabwe Stock Exchange’s key index — which has been trading in the red for six consecutive days — plunged a massive 11 percent on the first day of trade following Mugabe’s win.

The 89-year-old leader won 61 percent of the vote against his main rival Morgan Tsvangirai’s 34 percent.

Among recent losers were tobacco processor BAT which retreated $0,70 to trade at $1,40 while cement manufacturer  Lafarge Cement shed $0,30 to trade at $1,05.

Insurance giant Old Mutual eased $0,10 to close at $2,40 while beverages maker Delta Corporation and Pretoria Portland Cement both traded $0,05 lower at $1,14 and $2,15 respectively.

Only three counters traded in the positive territory.

Diversified financial group FBC Holdings added $0,005 to close at $0,095 while Dawn Properties gained $0,009 to $0,0099 cents and Mashonaland holdings rose by $0,005 to trade at $0,029.

On the other hand, the mining index lost 3,05 percent to settle at 56,17 points after Bindura Nickel Corporation slipped $0,065 cents to close at $0,0180.

Gold producer Falcon Gold, coal producer Hwange Colliery Company and RioZim traded unchanged.

Comments (4)

Funny no one is commenting on this important indicator. I bet most Gikurahundis do not know what this means. In layman terms it means investors are running away from Zimbabwe. That in itself may not mean much to most but let me put it in simple terms-no foreign investors-no industrial development-no jobs-back to stone age as all things fall apart. If ZANU can pull a miracle and get the economy back on track, creat real employment, enable production of adequate food, provide adequate basic health care facilities for all, provide enough learning materials and facilities for our children, provide enough funding for Universities and Colleges, provide enough clean water to all urban areas, fix the delapidated roads, stop using police as revenue collectors for Chihuri's personal gain, may be just may be I would have the justification to consider voting for ZANU PF in future. Sorry, I can't do that they killed too many innocent civilians and I sure hope Mugabe knows "Thou shall not kill". He claims to be a roman catholic, what a joke, I just hope he is strong enough to go meet his creator, the devil and I sure hope that will happen while I am still on this planet to celebrate.

bingo wajakata - 15 August 2013

These politicians don't care about the man on the street they only care about themselves ,their kids are overseas ,All this is a positive on their part they know that we can't do anything to them ,Trully speaking anyone who supports this economic meltdown l doubt if he is sane.The stock market is the heart for any country but in ZIM zanu seems to play political games with this institution but one thing for sure is that this economy is going to come to a halt.If investors continue to withdraw their investments at this rate ,l am seeing a crisis in a few months to follow and shelves going empty again

CASHTALK - 15 August 2013

All these Zunupf supportes do not realize where Zimbabwe is headed Mugabe destroyed this country in 2008 Zimbabwe was on the edge of distinction then came the GNU which saved Mugabe, now he steals the election and opens his big mouth just to take us back to 2008. Please all you Zunupf supporters understand, that the only people to gain from this is Mugabe and his chefs

Zuze - 17 August 2013

Just before elections the bourse was sitting at a value of 5.96 billion dollars and certain players in the economy predicted breaking the 6 billion mark. Effectively since election results were announced the value of the local bourse has lost over a billion dollars or almost 17%. In any other economy people would be going crazy with these sort of losses. I think the gains though in the weeks leading to the elections were in anticipation of an opposition win which was expected to see serious growth in the economy. Sadly this was not to be. Now the people await for the creation of 2.65 million jobs in the next two years which were promised by the incumbent as industry continues to shrink. It begs the question, "where shall the jobs come from?"

love thy nation - 20 August 2013

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