THE Zimbabwe Stock Exchange market capitalisation closed the month of November at $3,89 billion, marginally dropping from the peak value of $4 billion the prior month amid fears of looming polls. It opened the year at $3,4 billion.
Report by Victoria Mtomba
Market value of the stock market has been on the recovery mode between January and October where it reached the $4 billion mark.
Market capitalisation is the total value of the issued shares of a publicly traded company. The increase in the market value on the local bourse in October was attributed to the rise in the value of blue chip Delta which breached $1 billion mark.
ZSE acting chief executive officer Martin Matanda said the market indices had remained stagnant.
“The market is being affected by the pending elections and I don’t think investors are now certain with the indigenisation,” he said. Zimbabwe will next year hold general elections which are expected to mark an end to the inclusive government.
The drop in the market capitalisation was a reverse of what was happening in 2011 where the market capitalisation was at $4 billion from January to August and it started to decline from September to December.
Monthly turnover on the local bourse stood $55,7 million in January before retreating to $41,5 million in May.
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In June, it rose to $65,2 million before declining to $47 million in July. It closed the month of November at $26,7 million.
The turnover volume has been declining as well since January at 383 219 763 to close in the month of November at 157 992 795.
The mining index has been declining since January at 79,09 to 68,74 while industrial index for the month of November was 150,10 from 138,52 in January this year.
Shares bought by foreigners declined to 61 190 634 in November from 158 486 36 in January.
