HomeNewsZimbabwe Stock Exchange Industrial index sheds 7%

Zimbabwe Stock Exchange Industrial index sheds 7%


THE Zimbabwe Stock Exchange (ZSE) industrial index declined by 6,9% to 188,08 points in July from the December figures as the bourse took a battering from the slow performance of the economy, latest statistics have shown.


The industrial index was at 202,12 points on December 31.

Market capitalisation for the local bourse declined by $203 129 to $5 billion from $5,2 billion in December 2013.

This means that $203 129 in shareholder value was lost on the stock market.

Market capitalisation is the total value of the issued shares of a publicly traded company.

During the month of July the stock market indices increased due to the performance of stocks of Econet, Seed Co and Bindura Nickel Corporation.

The industrial index increased to 188,08 points up from 186,57 points in June while the mining index increased to 95,00 points in July up from 61,32 points in June.

Turnover value for the bourse increased to $28,5 million in July from $25,2 million in June.

Turnover volume for the ZSE increased to 322 407 141 shares during the month of July compared to 178 469 676 shares in June.

EFE Research said Hippo, OK and SeedCo were the top risers as Hippo recovered 3,3% to 62 cents while OK Zimbabwe and SeedCo were up 5,82% and 1,27% to
18 cents and 80cents respectively.

MMC Capital said the industrial index rose in July because there was a period during the month when demand at the market increased because of the demand of Delta, Econet and OK share prices.

The mining index increased to 95,00 points due to the strong performance of Bindura Nickel Corporation share price which has been on a growth trajectory since June this year.

In May, the turnover value decreased by 31% to $35,9 million compared to $51 million in April. The turnover volume was down to 235 704 129 shares from
429 086 166 shares.

The performance of the ZSE is a mirror of what is happening in the economy. The economy is weighed down by liquidity constraints and low investor confidence.
This has forced Finance and Economic Development minister Patrick Chinamasa to revise downwards the growth projections to 3% from 6,1% earlier projected.

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