ZSE daily turnover plunges to US$105, lowest in seven years

THE Zimbabwe Stock Exchange (ZSE) daily turnover on Tuesday plunged to a meagre US$105 from as high as US$1,5 million recorded last week, its lowest in seven years as the economy implodes, official show.

At close of trades, the ZSE industrial index was flat on 98,88 points after one counter, Barclays, traded unchanged at US$0,015. The mining index was also unchanged on 26,30 points, mirroring low business activity in the economy.

On Monday, the market had recorded turnover of US$14 197.

The lowest ever trade since the adoption of the multicurrency regime was on February 19, 2009 when the local bourse switched to trades in US dollar trade. On this day, 3026 shares worth US$30 exchanged hands before the exchange became bullish on positive investor sentiments following the formation of the coalition government.

Low foreign investor participation, liquidity constraints and confusion over the country’s Indigenisation law compelling foreign investors to cede 51% stakes to locals has widely been blamed for keeping foreign capital at bay.-Bernard Mpofu