HARARE — Foreign buyers continue to dominate activity on the Zimbabwe Stock Exchange, increasing their investment by 5% to $79,4 million in the first quarter (Q1) of this year.
Zimbabwe is struggling to attract foreign direct investment (FDI), but its stock market, which is among the best performing in Africa, has been an exception.
Foreign capital accounted for 67% of the total turnover of $118,6 million in the three months to March in contrast to the $75,5 million or 62,7% in the corresponding period last year, which recorded sales of $120,4 million. However, analysts say the worsening economic situation will likely impact the stock market’s performance.
“We believe the economy has reached a point where the government has to take radical measures in order to stimulate the economy,” stockbrokers, Lynton Edwards Securities said in a report.
This week, the industrial index gained 2,96 points despite shedding 0,38 points to 176,55 points in Friday’s trades.
Value of trades for the week rose sharply by 170% to $10,9 million. The majority of trades were in market movers, Delta and Econet which contributed 82% of the total turnover.
In Friday’s trading session losses were recorded in Econet which shed 0,49 cents to 66 cents and SeedCo which traded four cents lower to 76 cents. The resources index was unchanged at 29,03 points, but lost 0,61 points on a weekly basis.
– The Source
