Mugabe hits Zim stocks for second day

Harare – Zimbabwe’s main stock index fell for a second day after President Robert Mugabe won re-election.

Banks stopped issuing new loans and his party said it will press ahead with a program to force foreign companies to cede assets to black Zimbabweans or the government.

Barclays Bank of Zimbabwe Ltd., the biggest bank by market value plunged 20 percent to 44 cents, adding to yesterdays’ 15 percent decline, and the benchmark Zimbabwe Stock Exchange Industrial Index declined 2.2 percent after plummeting 11 percent yesterday, Zimbabwe’s IH Securities said in an e-mail.

The mining index fell 6.2 percent.

The Zimbabwe Stock Exchange is yet to release its own figures.

Mugabe’s victory, which extends his 33 years in power, was rejected by his main rival, Morgan Tsvangirai and his Movement for Democratic Change, because of allegations that the vote was unfair because hundreds of thousands of MDC supporters were prevented from voting.

Most banks in Zimbabwe have stopped making new loans because of concern about economic policy under the new government, two chief executive officers of lenders said, declining to be identified because they didn’t want to anger the government. – Bloomberg News

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