Zimbabwe Stock market prediction July 11 2011 : THE value of shares that exchanged hands on the Zimbabwe Stock Exchange (ZSE) rebounded in June after declining for three successive months since March, according to statistics.
In June, shares worth US$42 908 449,50 were traded.
After hitting US $47 477520,86 in February, turnover dropped to US$36 374 501,59 in March. In April turnover was US$35 497 749,67 before dipping to US$28 895 279,98 in May.
According to ZSE statistics, foreigners were the most active on the bourse after buying 85 326 721 shares worth US$14 759 085,36. They sold 140 363 750 shares worth US$17 725 119,77. Foreign investors have been driving activity on the ZSE as locals do not have the cash to participate due to liquidity constraints.
As such foreign investors have been determining the fate of the bourse and when they sneeze, the market catches the cold. In the second quarter of the year, the market has not been performing well as foreign investors were scared after government decreed that foreign-owned mining companies in March submit indigenisation proposals within 45 days.
In the second half of the year the performance is set to be better with the release of mid-term financials by companies. The announcement that negotiators to the power sharing deal have agreed on a poll roadmap, which means there are no elections this year, is set to calm the nerves of investors.
The performance of the stock exchange is an indicator of the state of the economy and is closely followed by investors. Its performance also the 20 stock brokers who derive their income from commissions on the buying and selling of shares. Government has put some measures such as the slashing of costs among others to increase trade on the bourse.
Last year, the government slashed the transaction costs on the buying and selling of shares to 3, 5% from 7, 5% to bolster activity on the bourse. The move was also designed to align the transactional costs to those obtaining in the region. For the latest updates PRESS CTR + D or visit Stock Market news Today
No comments:
Post a Comment