Market capitalisation recorded its highest level in September this year, closing the month at $3,82 billion, up from $3,49 billion in January last year on the back of improvements in both the industrial and mining indices.
Report by Acting Business Editor
According to the Zimbabwe Monthly Economic Review for the month of October by the African Development Bank (AfDB), the month of September saw a loss of value of the mining index compared to the same month last year when it averaged 150 compared to an average of 90 this year.
“There is, however, some convergence in the industrial index for the two comparable periods, with the index picking from an average of 130 at the beginning of September 2012 to around 145 at the end of the month, a development which may see it catching up with the September 2011 average of 150 if the momentum is sustained,” reads part of the report.
AfDB said the value of shares bought by foreigners also increased by 180%.
“Such a development may have been a result of an improvement in the perception of the investment climate in Zimbabwe,” further reads the report.
The value of shares bought by foreigners increased year on year to $20,5 million up from $7,3 million the corresponding year.
In terms of volumes, the shares bought jumped to 153,8 million compared to 36,7 million.
AfDB said according to the Securities Exchange Commission of Zimbabwe, demutualisation process of the Zimbabwe Stock Exchange was on course. A financial consultant was hired to facilitate the process.
Demutualisation would reduce conflict of interest by separating ownership, trading rights and management of the exchange and make it easier to raise capital and to quicken decision-making, among other key improvements.
Conditions for successful demutualisation include, among others, a sufficiently liberalised financial market that enables the exchange to explore and expand opportunities across borders, policy consistency and macroeconomic stability to uphold investor and issuer confidence and a large investor base that ensures financial viability of the demutualised exchange.