HomeBusinessForeign investors return to ZSE

Foreign investors return to ZSE

Statistics from ZSE showed that shares worth US$51 341 173,53 exchanged hands last month on renewed interest from investors up from US$42 908 449,50 sold in June.

Foreigners bought shares for US$15 693 329,68 but sold others worth US$13 170 397,69.

In June, foreign investors were net sellers after disposing of shares worth US$$17 725 112,77 but bought shares worth US$14 759 085,36.

The June scenario was the first time foreign investors had sold more than they had bought. The country started using multi-currencies last year.

Due to the liquidity constraints, foreign investors are major players on the bourse and when they start selling, it spells doom for the bourse.

 

The rebound to net buyers last month was expected, according to analysts, due to increased growth prospects which attract foreign investors.

Analysts say the developments in the global economy would see capital flows to emerging and frontier markets as opposed to developed markets.

“In this regard, the performance of the ZSE is expected to support strong international capital flows, high commodity prices and positive corporate earnings in the consumer and agriculture sectors of the economy,” said brokerage firm Platinum Securities.

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