Mixed reactions marked the first day of trading at the Zimbabwe Stock Exchange (ZSE), with the industrial index declining compared to the last day of trading in December, while the mining index recorded some gains on the same day.
BY VICTORIA MTOMBA
The industrial index, which is the main index on the stock market, opened the year at 114,35% points compared to 114,45% points on December 31 indicating a 0,09 point loss.
The mining index, which shows the performance of companies in the resource sector gained 5,26% to 1,60% points compared to 1,52% points on December 31, 2015 due to the gains realised in Bindura Nickel Corporation during trade on the first day.
The industrial and mining indices were on a decline path since the beginning of 2015 and both closed the year at low levels compared to the beginning of the year. The industrial index in January 2015 stood at 164,90% points and closed the year at 114,85% points, while the mining index was at 58,13 points in January it winded off the year at 23,72% points.
The local bourse closed the year with a turnover of $228 million indicating that the market was down 46% in 2015.
In 2014 the market closed at $475 million.
Market watchers Lynton and Edwards said the equities market closed the year in the red for the second straight year as industrial index declined at 114,85 points and the mining index was 66,9% weaker at 23,72 points.
The year 2015 was a difficult year for the local bourse and most of its statistics were on a downward trend, while companies during the year, struggled to stay afloat. Companies recorded financials, which were low and most of the companies bemoaned the economic environment that affected most operations. Last year was the worst year in terms of performance for the local bourse since the country adopted the multicurrency system.
ZSE chief executive officer, Alban Chirume told NewsDay in an interview, that the turnover will be the same as 2015 and the industrial index will be depressed.