HomeNewsZSE plunges as uncertainty grips

ZSE plunges as uncertainty grips

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THE industrial index yesterday plunged 25,64 points to close at 205,57 points on the back of losses in heavyweight counters as uncertainty gripped the local bourse following a dispute over last week’s elections.

REPORT BY BERNARD MPOFU/VICTORIA MTOMBA

MDC-T president Morgan Tsvangirai declared the re-election of President Robert Mugabe as “null and void”.

The ZSE main index closed 11% down to 205 points while the mining index retreated by two percentage points to close the day at 65 points in a trading session that was characterised by net sellers.

Beverage giant Delta, according to ZSE figures, lost a hefty 30 cents to close at 120 cents, Innscor shed 15 cents to trade at 90 cents and Econet dropped 10 cents to trade at 58 cents.

Hippo retreated 5 cents to 100 cents whilst Edgars and OK Zimbabwe came-off 4 cents each to close at 10 cents and 26 cents respectively.
Two counters were, however, in the positive territory; ZHL added 0,20 cents to trade at 1,40 cents and Old Mutual was marginally up by 0,03 cents at 242,03 cents.

ZSE chief executive officer Alban Chirume attributed the plunge to uncertainty surrounding the outcome of the election.

“The various political statements made have made players unsure what the position is and brought in turbulence. The market may settle on the back of provision of direction,” Chirume said.

A local market analyst also concurred with Chirume, adding that the formation of a new government could calm investor fears. Tsvangirai has described the election outcome as null and void, adding that he would soon send a dossier exposing alleged vote rigging to Sadc and the African Union.

“Uncertainty is the word, but let’s wait for the President’s inaugural speech,” the analyst said.

Turning to the mining index, Bindura was offered lower at 2,30 cents from 2,60 cents, while Falgold, Hwange and RioZim were unchanged at previous trading levels.

The developments come at a time when market capitalisation, which was $3,96 billion during the beginning of the year, nearly breached the $6 billion mark last Friday after the polls.

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