THE Zimbabwe Stock Exchange (ZSE) recorded a total market turnover of ZWL$171 billion in the third quarter of this year, up 418% from the comparable quarter last year, with five firms contributing more than half of the total revenue.
Higher turnover in a stock indicates better liquidity, which means that it is easier to sell the stock in the market.
In the same period last year, the market turnover was ZWL$33 billion, latest data gathered from the ZSE revealed.
The top five trading companies during the period under review were First Mutual Holdings (ZWL$52,7 billion), Delta (ZWL$14,8 billion), Econet (ZWL$5,8 billion), Meikles (ZWL$3,5 billion) and OK Zimbabwe (ZWL$3 billion).
These five firms contributed 87,5% of the third quarter total turnover.
The market capitalisation lost 29% from the previous quarter, to close the quarter at ZWL$9,87 trillion. This represents a 443% increase from the same comparative period last year.
The top five biggest contributors to market cap were Delta, Econet Wireless Zimbabwe, FBC, CBZ and EcoCash Holdings Zimbabwe.
Economist Prosper Chitambara said the performance of the local bourse could have been affected by the elections. Zimbabwe held general elections on August 23 and 24.
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“In the third quarter we had an election in August. So, probably the uncertainties around the election could have affected the performance of the local stock exchange in terms of, maybe, loss of confidence by investors on account of uncertainties around the election and even preparations for the election,” he said.
“So, I think elections could have affected general confidence and sentiment on the bourse.”
The ZSE All Share Index, which is the measure of the overall market performance, was down by 26% in the third quarter to close at 126 642,42 points.
The ZSE top 10 Index, which is the blue-chip index on the bourse, retreated by 39% to close the quarter at 56 560,21 points.
The ZSE ICT Index recorded the highest loss for the quarter, registering a 41% drop to close at 78 092,73 points.
Foreign investor participation accounted for 11% of the third quarter trades. Net sells position stood at ZWL$28 billion.
The ZSE ETF Index, which measures the performance of ZSE-listed exchange-traded funds, was up by 11% in the period under review to close at 1 596,31 points.
The total value traded on the ETF board was ZWL$84,8 million and the total number of ETF units that exchanged hands in the quarter under review was 7,5 million.
The market capitalisation for the ETFs was ZWL$39 billion.
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