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Foreign investors net sellers on ZSE

Statistics from ZSE shows that foreign investors bought shares worth US$14 768 426,04 but sold shares worth US$15 844 772,51. However, the value of shares that exchanged hands recorded an increase to US$41 320 904,69 from US$38 617 982,70 in October.

This is the fourth time this year that foreigners have sold more that they bought, knocking down the confidence on the bourse.
Activities on the stock exchange are closely followed by investors to gauge the performance of an economy.
This has happened before in March, June and August.

Due to the liquidity constraints, foreigners are the major drivers of activity on the bourse and when they pull out, the ripple effect would be felt across the market.

In the past three months, government has amplified its call for locals to have majority control in foreign-owned companies operating in Zimbabwe. This has in turn led to foreign investors on ZSE being cautious in their approach.

The total value of shares that were sold during the year has already surpassed the turnover value of US$391 million recorded last year. It is on course to surpass the US$413 million recorded when the country dollarised in 2009.

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