Zimbabwe: No Respite to ZSE Losses

The benchmark industrial index shed off 2,07% to close the week on 170,49 points, its lowest point in seven months as the economic downturn takes a toll on the Zimbabwe Stock Exchange (ZSE).

The latest data means that the index has failed to post a gain since the week ending September 5 2014 when it sat at 201,28pts and has sinceshed off a cumulative 15,3%, research firm Efe Securities said on Friday.

“The unprecedented drop has been precipitated by an unrelenting economic downturn that has been exacerbated by the policy makers’ failure to come up with a plan to lure the much needed injections into the economy in the form of foreign direct investment,” it said.

The mining index firmed 1,75% to close at 65 points on gains in coal miners Hwange.

Values were at US$13,24 million up 116,44% up from the previous week on the back of block trades in ABCH by Bob Diamond’s co-founded Atlas Mara as it increases its stake in the regional banking group.

Efe Securities said foreigners buying into the dips drove the bulk of the liquidity on the market with the spend coming in at US$9,2 million representing 69% of the value expended on the market during the week.