HomeNewsZSE turnover soars as elections loom

ZSE turnover soars as elections loom

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THE value of shares that exchanged hands at the Zimbabwe Stock Exchange in May rose to $35,5 million last month from $26 million driven by firming of share prices of consumer facing industries, analysts have said.

Business Reporter

During the period under review, smaller volumes shares traded at higher prices indicating renewed interests on high value stocks.

Volumes, according to analysts, declined to 144,4 million from 165,7 million triggered by uncertainty over the date of the next harmonised elections.  The matter was later brought to finality when the Constitutional Court last week ruled that harmonised polls should be held by July 31.

The figures also reflected increased foreign participation on consumer facing industries as seen by net buying ahead of the forthcoming general elections. The elections are expected to be an epilogue to the inclusive government formed in 2009 after a widely contested in presidential election runoff of June 2008, that was widely condemned as a bloodbath.

The developments saw market capitalisation of the Zimbabwe Stock Exchange breaching the $5 billion mark during the period under review. During the period under review the ZSE market cap rose to $5,4 billion from $4,8 billion.

Foreign investors, according to market watchers have been targeting high value stocks such as Delta, Econet, Innscor, OK Zimbabwe, National Foods and Brititish American Tobacco, all consumer facing industries, driving the ZSE industrial index to 212,38 points in May from 189,66.

Analysts say rekindled interest by foreign investors after the signing into law of the Constitution is seen as paving way for the restoration of the rule of law and policy certainty.

The value of shares bought by foreign buyers, according to official figures, plunged to $36 million during the period under review from $45,9 million. The value of stock sold by foreign investors also declined to $15,3 million from $26,8 million.

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