THE equities market closed lower on the second consecutive day of trades, losing 0,87% to 117,92 points, led by heavy losses in Econet and OK as selling pressure mounts on the lacklustre local bourse.
Despite strong gains in Meikles, Econet, the third largest counter on the Zimbabwe Stock Exchange lost 11% of its share price to US16,01 cents. On a year-to-date comparison, Econet lost 73% of its share price, mirroring an underperforming characterised by liquidity constraints and weak aggregate demand.
The underperformance of the Econet share has seen Econet founder Strive Masiyiwa losing his spot on the Forbes’ Africa top 50 richest.
Other losses were recorded in insurance giant Old Mutual (-1,1%) and retailer OK Zimbabwe (-4%). ZSE market capitalisation which stood at US$3,6 billion as at October 31 was at US$3,1 billion on Tuesday.
Diversified group Meikles was the only counter which recorded gains by close of trades.
Official statistics show that foreign buys stood at US$26 000 against foreign sales of US$56 000 reflecting weak appetite on the ZSE.
Analysts attribute the selling pressure to structural deficiencies in the economy and the absence of a stimulus to ignite activity.
The underperformance of the local bourse — a key economic performance barometer — continues to reflect a slowdown in economic growth after total market capitalisation eased by 0,8% to US$3,6 billion in October from US$3,63 billion in prior month, marking a persistent bearish run for eight consecutive months.-Staff Writer