THE Zimbabwe Stock Exchange (ZSE) recorded a monthly turnover of $7 million last month, the lowest in seven years as the market took a battering on the economic downturn.
BY VICTORIA MTOMBA
Statistics from ZSE showed that August’s turnover was the second time the figure had gone below the $10m mark since March 2009 after the $8,9m recorded in November 2015.
Last month’s turnover was also the lowest since January and was down from July’s $11,8m.
The volume of shares that exchanged hands stood at 41 264 438, the lowest number of shares in 2016.
In 2016, April had the highest volumes of shares that were traded at 188 294 392.
This year has been tough for the local bourse.
In July, ZSE recorded the lowest daily turnover after shares worth $105 were traded on July 26.
In 2015, turnover was $250m, with ZSE chief executive officer Alban Chirume saying the bourse was expecting a 4% drop this year due to weak fundamentals and perceived country risk by foreign investors.
Analysts say performance on ZSE has been depressed due to economic headwinds that are unfavourable for the growth of trade.
In the first half of the year, foreign investors drove ZSE, with trades by foreigners accounting for 63%of the total trades during the period.
In the same period in 2015, foreign trades accounted for 51% of the trades.
The total value of trades was $89,29m in the first half of the year down from $137,73m recorded in the same period in 2015.