After starting 2024 on a positive note, the Zimbabwe Stock Exchange (ZSE) extended its losing streak this Monday afternoon to seven consecutive trading sessions as equities reversed gains posted for the greater part of January.
Due to the depreciation of the Zimbabwe dollar which has shed around 50 percent of its value so far this year, investors are coy on beefing up their stocks.
Faced with a devastating drought, policy inconsistency and inability to stabilize its currency, the local economy, including its capital markets present a gloomy picture.
Market analysts say the ZSE is seriously under-valued at current market capitalization of ZW$ 40.06 trillion which translates to US$3.09 billion using today’s official exchange rate of 12 955/USD.
Back track two years ago, the ZSE was worth about US$12 billion in market capitalization in real terms.
At the close of today’s session, the ZSE All Share Index was down 0.02 percent to close at 508 108.85 points.
Leading the losers were RTG which lost 14.76% to settle at ZW$366.65 as Meikles fell 9.14% to ZW$2 463.9306. OK Zimbabwe which released its Q3 trading update showing significant decline in volumes saw the market react by dropping 5.12% to settle at ZW$ 637.2560.
However, on the winners side, gains were recorded in NTS which was up 14.29% to ZW$ 160.000 AS Mash Holdings also gained 13.36% to ZW$ 249.8557.
A total of 241 trades exchanged hands valued at ZW$ 4.8 billion. However, foreign investors bought ZW$ 2.09 billion, which was almost half total trades as they only sold ZW$ 582 million.
