ZSE hits seven year low as economy implodes

THE Zimbabwe Stock Exchange (ZSE) on Tuesday plunged to its lowest levels since April 2009 after the benchmark industrial index closed at 95,08 mirroring the country’s floundering economy.
Interest in the ZSE’s blue-chips — Delta, Econet, Innscor, Old Mutual and Seed Co — has been on the wane due to structural issues besetting the economy.

Heavyweight counters lost significant value of their share prices only reducing the appeal of the ZSE as selling pressure mounted on investors.

At current levels, the lacklustre local bourse is now 59,22% lower than the peak of 233,18 points recorded in 2013 towards the end of the inclusive government whose tenure ended in the same year.

Latest figures show that gains in CBZ and insurance giant Old Mutual failed to offset the impact of the fall in heavyweight Delta stock, which shed 1,79% to close at 52 cents. Turnover for the day was US$1,3 million, with Delta accounting for US$1,17 million of that trade.

The equities market mainstream industrial index slipped to 104,7 points in May from 105,79 points in April dashing hopes of a bull run that was preceded by 14 months in the negative.

Nearly US$2 billion in shareholder value was lost year-on-year in the quarter to March compared to the same period last year as investors fret over indigenisation regulations compelling foreign investors to sell controlling 51% equity stakes to indigenous Zimbabweans.-Bernard Mpofu

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