Zimbabwe Stock Exchange resumes business

Ndaka Majaka

THE Zimbabwe Stock Exchange (ZSE) resumed trade lower yesterday after a month-long suspension, with the All Share Index opening 4.49 percent lower at 1708.50 points.

Characterized by low activity aggregates, the opening session saw all benchmark indices closing in the red.

Industrials reversed gains on a 4.54 percent slump to close at 5603.61 points while the Top Ten Index was the main casualty after succumbing 5.60 percent to settle at 1163.79 points.

The less active Mining Index was also 2.43 percent down at 3898.45pts on the back of losses sustained in RioZim.

Equities analyst Respect Gwenzi expects this trend to continue for the next month as retail investors dispose of their shares.

The Equity Axis boss also said the obtaining liquidity challenges in the market were going to trigger a massive sell-off as investors such as pension funds and insurance firms sought liquidity to discharge obligations.

 “Firms they will be looking at selling to get liquidity to get cash flows to cover due pension funds are insurance funds that might be needed back,” said Gwenzi.

On the resumption of trade, the bourse’s chief executive Justin Bgoni said the past one month had been a tiring period for the ZSE.

Taking to twitter, Bgoni said, “It has been an excruciating time since 29 June. We would like to apologise to our valued stakeholders for the inconvenience.”

“We would like also to thank all those who supported us during the closure of the market,” added Bgoni.

However, stalwart counters Old Mutual, Seedco and PPC remain suspended.