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Equities outperform inflation rate


ZSE loses 29% as foreign investors remain subdued



THE Zimbabwe Stock Exchange (ZSE) lost 29% of its value at the close of the third quarter as foreign participation remained subdued during the period under review.

Official statistics show that while the ZSE recorded a total market turnover of ZW$171 billion in the third quarter of 2023, a 27% increase from the previous quarter, market cap remain depressed, mirroring foreign investor sentiments on the local bourse.

In comparison to the same period last year (third quarter 2022), the market turnover recorded a 418% jump from ZW$33 billion.

“The market capitalisation lost 29% from the previous quarter, to close the quarter at ZWL$9.87 trillion,” a quarterly report for the period ending September has shown.

“Foreign investor participation was 11% in Q3 2023. Q3 2023 recorded net sells position of $28 billion.”

Election seasons have traditionally resulted in low foreign participation as most investors take a wait-and-see attitude.

 Zimbabwe held its general elections on 23 and 24 August which saw President Emmerson Mnangagwa retaining power in a poll which was widely criticised by both regional and international election observation missions. 

Regional bloc Sadc has already submitted a comprehensive report on the election while international observers are yet to publish their full assessments of the polls.

The top five biggest contributors to market cap were: Delta contributed 30.36%, Econet (13.10%), FBC (5.44%), CBZ (4.26%) and Econet Holdings Zimbabwe Limited which contributed 3.54%.

The ZSE All-Share Index lost 26% from the second quarter of 2023 to ghe third quarter of 2023 to close at 126,642.42 points.

Foreign investor participation accounted for 11% of third-quarter 2023 trades.

The ZSE All-Share Index, which is the measure of overall market performance, was down 26% in the third quarter of 2023 to close at 126,642.42 points. 

Statistics also show that the ZSE Top 10 Index, which is the blue-chip index, retreated 39% to close the quarter at 56,560.21 points in the third quarter of 2023.

The ZSE ICT Index recorded the highest loss for the third quarter 2023, registering a 41% drop to close at 78,092.73 points. — STAFF WRITER

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