The value of shares that exchanged hands on the Zimbabwe Stock Exchange (ZSE) was down 67% in January to $8 552 699 from the previous month, with foreign investors as net sellers, latest data from the bourse has shown.
BY BUSINESS REPORTER
In December, turnover value was $25 996 713.
In January, foreigners sold shares worth $5 514 345,38. They bought shares worth $1 411 133,22.
The volume of shares that exchanged hands was 31 616 982, down from 292 538 969 recorded in December.
The low January turnover value is a break on the rally, which began in October, when investors switched to equities in fear of the bond notes that were introduced at the end of November.
Investors were uncertain about the currency, as analysts saw the bond notes as an attempt to reintroduce the Zimbabwean dollar, which was demonetised in 2015.
The fact that foreign investors were net sellers showed that they have lost confidence in the market, which is grappling with foreign currency shortages.
The foreign currency crisis has seen companies facing challenges in repatriating dividends to foreign shareholders.
In November, the country’s biggest company by market capitalisation, Delta Corporation, said it had a backlog on foreign dividend of $14,8 million paid in June.
Foreign investors have been the major driver of the stock market, as locals are constrained due to the deteriorating economic environment.