TURNOVER for shares traded on the local bourse suffered marginally during the third quarter of this year, with a total of 3,291 billion shares changing hands compared with 3,4 billion shares traded during the sa
me period last year.
However, in value terms, the shares traded during the third quarter this year amounted to $69,8 billion against $9,4 billion for shares traded during the same period last year.
The high value for shares traded this year was largely a factor of inflation, analysts said.
Share volumes during the period had been subdued by the flight of capital into the money market during the period when interest rates where topping 800% per annum.
The stock market opened the year on a high note but slowed down after a monetary policy shift by the Reserve Bank which resulted on a significant tumble in rates during the current quarter.
Information obtained from the Zimbabwe Stock Exchange (ZSE) indicated that a total of 551 million shares worth $5,9 billion changed hands in a mixed market during the month of July.
A total of 1,09 billion shares worth $36 billion were traded in August.
Bulls raged in August and September after the central bank announced the first half monetary policy statement on July 31 which prompted a tailspin in interest rates.
The central bank reduced key accommodation rates from 850% to 300% and 900% to 350% for secured and unsecured lending respectively.
Other rates had plunged in sympathy, prompting a rush to equities in the current fourth quarter.
The central bank had also devalued the dollar by 60% to $250 for a greenback. This resulted in a stampede to the stock market.
Meanwhile the stock market remained weak with no real direction during the week.
On Wednesday, the industrial index closed 2,04% weaker at 407 651,71 points, on the back of broad declines recorded across the board.
The mining index ended 2,70% weaker at 172 656,03 points.
Market analysts said selective buying had characterised the market.
“Investors are eying counters that have a history of defying odds when the market is not active. Random buying is no longer common on the market,” a market analyst said.