Stock market turnover down 6 percent

Spread This News

DESPITE a flurry of block trades on the Zimbabwe Stock Exchange, turnover for the third quarter ending September was down 6,4 percent to $125,6 million compared to the same period last year as foreign participation marginally declined.
Foreign participation declined to 48 percent this year from 50 percent with local activity remaining subdued owing to liquidity constraints.
The number of the shares that exchanged hands stood at 861,510,986 compared to 831,007,836 registered in prior period driven by block trades which included mandatory offers to minorities.
The National Social Security Authority divestment from Art Corporation in August and Atlas Mara’s takeover of ABC Holdings were key in driving volumes this year.
An equities market analyst said while foreign interest on the market remained high, there were more buyers than sellers on the market this year compared to the post-election period last year.
“A higher foreign investor participation recorded last year is attributable to the post July 31 elections interest. (The dip in foreign interest this year) is happening at a time when local investors continue to face liquidity constraints,” said Kudzai Samudzi of MMC Capital.
He said foreign investors had in the past month renewed their interest in companies with strong shareholder support, effective management and viable business models despite a general slowdown in the economy.Advertisement