ZSE market capitalisation dips

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Market capitalisation on the Zimbabwe Stock Exchange (ZSE) dipped to $4,11 billion in August from $4,17 billion in July weighed down by industrial index.

A total of 318 009 692 shares worth $42,4 million were traded in the month of August indicating a decline from 619 769 026 shares worth $51,3 million traded in the month of July.

According to the latest African Development Bank (AfDB) monthly review, during the period under appraisal the industrial index closed at 160,53 points from 163,69 points in July while the mining index was up at 164,52 points from 160,17 points in July.

“It goes to show the great potential that the sector has in driving the economy, despite the rather adverse operating environment. It is clear that the mining index was fluctuating for the month of August compared to the industrial index, which on average was constant during the same period,” said AfDB.

A net capital outflow of $2,4 million was recorded on foreign transactions with a total of $20,5 million worth of shares bought against $22,9 million sold.

Analysts attributed the decline in the market
capitalisation to heightened tensions in the mining sector following threats to withdraw operating licences for several foreign-owned mines under the indigenisation and empowerment drive.

Anxiety scaled up mid-August after the government temporarily cancelled the operating licence of one of the country’s most successful gold mines, Blanket Mine, which is wholly owned by Canada’s Caledonia Mining.