ZSE records $56m turnover in January

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The Zimbabwe Stock Exchange (ZSE) recorded its highest turnover value since July 2009 in January amounting to $55,8 million from 383,2 million shares.
According to the Zimbabwe Monthly Economic Review for February by Africa Development Bank (AfDB), the ZSE started the year on a turbulent note.

This shows a marked improvement in the average price of shares, an indicator of confidence on the stock market. There was also an improvement on foreign deals which saw a net inflow of capital of $17,8 million, said AfDB.

Market capitalisation declined to $3,5 billion in January from $3,7 billion at close of trade in December 2011. The mining index hit its lowest level since 2009 to close the month of January at 70,09 points.

The index had recorded levels of more than 200 for the beginning of the year, since the multi-currency system. The downward spiral began in April 2011, possibly resulting from the intensification of the implementation of the indigenisation policy which raised a lot of uncertainties on the long-term viability of the mining sector, reads part of the report.

The industrial index also declined since the beginning of the year to close the month of January at 138,52, the lowest level since August 2010.

This could be attributable to the slow recovery of the manufacturing sector due to liquidity challenges. The development for January could also be attributable to low activity of the sector as most counters were on their annual shutdown, AfDB said.

Meanwhile AfDB said gold output for the month of January increased to 1 153,16kg from 724,8kg last year.

When compared to January 2011, a marked improvement in gold production can be observed as small-scale producers produced only 125,6kg while primary producers produced 599,2kg, the report said.

It said gold and platinum prices firmed by 9% and 15% respectively while copper and nickel prices increased by 8% and 10% respectively.

The report said rough diamond prices were affected by increase in supply of diamonds especially from Zimbabwe following the lifting of the ban on Marange diamonds in the period under review.