20 January 2018
Tsvangirai golden handshake confirmed
DisGrace sneaks out three luxury cars
ED cuts Bob Singapore crew from 38 to 22
Call for Diaspora Minister and MPs
ED so over confident it worries him
Priscilla demands coup ‘killings’ details
CBD maize roasting must end now: Min
Tsvangirai faces disgraceful exit: Judge
ZTA targets domestic tourism
SOE DEBATE: Privatise most parastatals
Delight as ZBC 'Iron Lady' suspended
Sulu arrested over $4,000 child support
Mapeza targets CAF CL group stages
Tendai Ndoro special - says Ajax coach
Elections: Not a moment to be lost
A view beyond the Zimbabwe coup
Mnangagwa off to Davos empty handed
Economy: the need for a paradigm shift
ZSE market cap down 10 pct on weak foreign trades, liquidity crunch
08/04/2015 00:00:00
by The Source
ZSE ends week in positive territory

THE Zimbabwe Stock Exchange market capitalisation for the quarter ending March 31 dipped nearly 10 percent to $4,1 billion compared to the prior comparative period on weak foreign participation and liquidity constraints on the domestic market, official statistics have shown.

The figures show that the ZSE has maintained its downward spiral since the start of the year as the industrial index slipped to 156.01 in March 2015 from 167.16 in February.

Market capitalisation opened the year at $4,36 billion in January.

The value of shares bought by foreign investors in March also plunged to $6,4 million from $14 million in prior year, reflecting a weak investor appetite for local stocks.

On the other hand the number of shares that exchanged hands in the first quarter of 2015 also decreased compared to the same period last year.

Analysts attributed the poor performance of the equities market to structural issues confronting the economy.

“The poor performance is on the back of poor operating fundamentals in the economy as reflected by company closures, retrenchment, scaling down of operations, negative inflation and limited access to affordable long term capital,” said MMC Capital Research analyst Kudzi Samudzi.

“These challenges have in turn been reflected in poor results that have been released by most quoted companies with the exception of a few that have a foreign flair.”

Government has toned down its rhetoric on the indigenization and empowerment regulations compelling foreign firms to dispose of at least 51 percent stakes to locals in a bid to whet the appetite of investors.

The new measures which would address the empowerment issues on a sector by sector basis as opposed to initial blanket approach are yet to stimulate activity on the local bourse as well as attract more foreign direct investments.


Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it






Face Book



comments powered by Disqus
RSS NewsTicker