THE Zimbabwe Stock Exchange bloodbath has continued unabated after turnover plunged to US$8 million in November from a record six-year low of US$12 million recorded in prior month as poor structural inefficiencies and liquidity constraints on the economy pile selling pressure on investors.
Analysts say the performance of the Zimbabwe Stock Exchange (ZSE) has remained depressed since the beginning of the year, owing to illiquid conditions and high trading costs, among others.
The main-stream index opened the year at 164,90 points, and had declined to 117,55 points by end November 2015, while market capitalisation fell by 21,7% from US$4,36 billion to US$3,4 billion over the same period. The value of foreign deals which peaked US$26 million in February has been on a downward spiral dropping to US$6,5 million in November mirroring a weak appetite on the local bourse.
The dismal equities report came after the 2016 National Budget—which analysts say will give little impetus to an economy characterised by poor output from the anchor agriculture sector, declining aggregate demand as unemployment surges and low foreign direct investment inflows.-Staff Writer