The value of shares that exchanged hands on the Zimbabwe Stock Exchange (ZSE) was up 204% in the first quarter of the year to $144 555 983, with foreign investors buying more than they sold, latest data has shown.
BY BUSINESS REPORTER
In the same period last year, turnover was $46 456 616,20.
Data from ZSE show that turnover was $34 704 376 in January rising to $66 184 479 in February and $40 667 128 in March.
The volume of shares traded was 297 386 164 down from 359 816 164 recorded in the same period last year.
The top 10 index, which was introduced at the beginning of the year ended the quarter at 85,71 points from 100 points in January. The index has the top 10 companies by market capitalisation.
Investment analyst, Ranga Makwata, said compared to the end quarter of 2017, the equities in the first quarter of 2018 were more than twice more valuable.
The industrial index ended the period under review at 291 points, up from 138,96 recorded in the same period last year.
The index reached a peak of 521,85 in October before tapering off after November after the military intervention.
“The rally in 2017, especially from May to October, was being driven more by fear than by optimism. In other words, concerns about value erosion in local currency terms through inflation, which was beginning to rise and currency depreciation against the real US dollars,” Makwata said.
“Improved optimism after the swearing in of President, Emmerson Mnangagwa, is the major cause of the correction we have witnessed on both the forex parallel market and equities. It is not a bad thing, but instead a positive sign that public confidence is steadily replacing panic and speculative tendencies on the financial markets.”