THE value of shares that exchanged hands on the Zimbabwe Stock Exchange (ZSE) declined by 31% in May as the local bourse continues on a see-saw performance since the beginning of the year.
Turnover value decreased to $35,9 million in May compared to
$51 million in April while turnover volume stood at 235 704 129 shares in May down from 429 085 166 shares.
A local analyst said the decline in turnover value was due to the cautionary stance that has been taken by foreign investors.
“Foreign investors are no longer buying stocks as they used to do as many companies are down and also the performance of the economy which is not very well,” the analyst said.
The analyst said the indices went up because of the performance of blue chips — Econet and Delta —that released their financials in May and had a positive impact on the market.
Sentiments on the review of the indigenisation policy, the analyst said, also contributed to the positive performance of the market in May.
Although decreases were recorded in turnover volume and value, both the industrial and mining indices went up during the period under review. The industrial index increased to 174,89 points in May from 172,91 points while the mining index went up to 35,44 in May from 29,64 points.
The industrial index started off the year at 189,25 and it maintained the position in February and it went down to 176,32 points in March.
The mining index has been having a mixed performance since the beginning of the year as it took off at 35,04 points to rise to 39,24 points to retreat to 29,51 in March.
In the 11 months to November 2013, the mining index lost 18,1 points and close November at 47,02 points from 52,68 points.
Finance minister Patrick Chinamasa, in his 2014 National Budget, said the mining index was very volatile in 2013 as it registered 84,07 points as at January 31 2013, falling 66,21 points by March 31 2013 before recovering in July 2013 and trending southward in November 2013.
Market capitalisation increased during the month of May to $4,53 billion compared to $4,47 billion in April.