BY OUR STAFF
AT least US$700 million in shareholder value was wiped away on the Zimbabwe Stock Exchange (ZSE) between July last year and the same period this year, according to latest data from the bourse.According to figures from ZSE, market capitalisation — measured by multiplying the total number of shares of stock listed entities and the prices — went down to US$3,445 934 705 billion at the end July from US$4 172 702 158 during the same period last year.
This means that US$726 767 453 was wiped away during the period as the effects of the Indigenisation Act took a toll on the bourse mainly driven by foreign investors.
Over the same period, the industrial index dropped to 132, 92 points last month from 193, 69 during the same period last year. The mining index fell to 112, 12 points last month from 160, 17 points in the year comparable.
The wiping away of shareholder value comes at a time foreign investors are having a field day on the bourse snapping shares at will due to the liquidity constraints.
Under normal conditions locals should drive activities on the bourse.
The stock exchange shows the health status of an economy and its performance is closely followed by investors.
BY OUR STAFF