Investor flight slows ZSE rally

THE decline in foreign investor participation on the Zimbabwe Stock Exchange (ZSE) last month ended a rally that had begun in the first two months of the year, it has been learnt.

Business Reporter

Statistics provided by Finance minister Tendai Biti in his first quarter state of the economy report on Monday show that the industrial index last month was fluctuating having opened at 183,98 points before forming to 190,96 and later softening to 185,6 points.

The mining index remained subdued recording 84,07 points in January, before dropping 83 points and further slumping down to 63,9 points as of March 22.

“The stock market rally that occurred during the month of January and February, however, slowed down during the month of March as foreign investor participation declined,” Biti said.

“Consequently, total market capitalisation marginally increased from
$4,751 billion at the end of February to $4,761 billion as at March 22 2013.”

In January, ZSE was rated as one of the best performing bourses in the world after the local bourse’s main industrials index added 20,3% since the beginning of the year.

The strong performance was attributed to foreign investors with South Africa-based brokers Allan Gray, African Alliance and Renaissance Securities inking broking deals for foreigners.

In yesterday’s trade the industrial index closed 0,40 points lower at 188.03 points. Econet Wireless shed off 0,99c to
65c while Fidelity Life was 0,50c weaker at 12,50c.

Amongst the gainers were PPC up 0,60c to 200,60c and DZLH added 0,51c to close at 27,51c.

Colcom, Hunyani, TSL and Turnall added 0,50c each to close at 26,50c, 3,50c, 18,50c and 5,50c respectively.

The mining index gained 0,61 points to close at 66,36 points. Hwange added 0,50c to 12,8c.

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