ZSE became lifeless after the MDC-T partially disengaged from government a fortnight ago.
Over the years, the local bourse did not respond to political developments in the country and global events.
On Monday, the industrial index jumped just 1,8 points (1%) to close the day at 168,36 points. The resources index closes weaker after shedding 8,53 points (4%) to 225,65 points on the back of losses in Hwange and RioZim.
On Tuesday, there was a bloodbath on ZSE as only one counter recorded a gain. The industrial index was down 4,24 points (92,5%) to 164,11 points on the back of loses across the board as reports that the three principles pf the global political agreement failed to agree on how to break the deadlock created when MDC-T disengaged.
Caps Holdings was the only gainer on Wednesday as it put on US0, 3c (18%) to close the trade at US$2.
“We expect the market to be subdued for the reminder of the week as investors are sceptical about the status of the GNU (government of national unity). We however encourage risk takers to pick cheap stocks,” Zimbabwe Allied Banking Group research said on Tuesday.
On Wednesday, the industrials continued losing ground with the index shedding 6,05 points (4%) to 158,06 points as 21 counters closed in the red while three registered gains.
The mining index took a major knock on the same day as it fell below the 200-point mark after losing 31,46 points to close at 187 points.
For a long time now market players have been wondering when the market will recover. Zimbabwe, they argue, has cheap assets with better chances of generating high returns in the future.
Zimbabwe’s risk-adjusted returns is said to be the least attractive when compared to the region.
Apart from the political problems, Zimbabwe is ranked one of the worst places to do business in. Events such as the recent specification and suspension from trading on the ZSE of Kingdom Meikles Ltd (KML) seem to give credence to this notion.
Even though there might be genuine reasons to specify the group, the message sent across the world is that private property rights were violated.
KML investors, who include foreigners, are losing out as their shares are not presently tradable. Such investors would not want to invest in the country again and it will be difficult to correct this perception.