via ZSE loses $538m in 10 months | The Herald November 5, 2014
Zimbabwe Stock Exchange has so far lost about $538 million of its value in the first 10 months of the year. Statistics from ZSE show that the bourse’s market capitalisation stood at $5,23 billion in October last year against $4,664 billion by October this year.
While capitalisation was 10,3 percent poorer than the same period last year, turnover raced 8 percent ahead of last year’s figure at $388 million.
However, almost a similar volume of shares was traded in the period under review at 2,520 billion last year against 2,548 billion so far this year.
Foreign investors continued to dominate activity on the domestic bourse, accounting for 64,6 percent of turnover, $251,2 million in value terms.
The statistics from the ZSE also show that foreign investors sold just over $158 million worth of shares compared to $126 million in the same period last year.
About 985 million shares were bought by foreigners while 739 million were sold since January this year, 68 percent of the volume traded to date.
The cash-rich foreign investors bought a lot more shares this year, 985 million, compared to 647 million shares that they snapped up last year.
At 432 million shares, they have also exited the market remarkably faster this year, in volume terms, selling 738 million shares in the period to October.
The market is expected to record negative growth this year due to depressed activity on the local bourse, market experts have warned.
Some market analysts have concluded that ZSE would this year not register growth, suggesting instead that the bourse was more likely to decline.
Year-to-date the ZSE Industrial index has come off about 12 percent and 15,5 percent year-on-year while Minings eased 53,7 percent and 45,7 percent respectively.
The majority of companies on the ZSE have been struggling due to the difficult macro-economic environment.
Most companies have been struggling to raise funding to support production and replace antiquated equipment to improve efficiency levels.
Meanwhile, Econet Wireless recorded the highest value in the month of October after $9,8 million worth of its stock changed hands. Delta, Innscor, Seed Co and Zimplow completed the list of the top five traders.
Ariston, up 66,67 percent, Willdale 33,33 percent, First Mutual 25 percent, Dawn Properties 12,5 percent and Radar 10 percent) constituted the list of top five gainers between January and October 2014.
The top five losers comprised ZB Financial Holdings, down 66,13 percent, Cottco lost 66,5 percent, Turnall shed 48,8 percent, Edgars Stores came off 31,82 percent while Astra Industries retreated 29,15 percent.
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