Foreign Investors Drive ZSE Turnover

The volume of shares traded in February although lower at 239 515 915 were worth more than the 302 743 550 realised in January which saw a turnover of US$32 553 129, 74.

February’s turnover is the sixth highest since the use of multiple currencies in 2009.

The movement in turnover was mainly driven by foreign investors who bought shares worth US$25 149 263, 52, which is more than half of the monthly turnover.

In the previous month, foreigners had bought shares worth US$13 783 682, 16.

Foreign investors are taking advantage of the liquidity constraints on the market to snap up shares on the bourse.

The performance of a stock exchange is closely followed by investors to assess the health of any economy.

The increase in turnover comes at a time analysts have predicted that annual will be at US$420 million this year driven mainly improvements in banking deposits, growth of exports and the continued participation by foreigners on ZSE.

According to a report by MMC Capital, a leading brokerage firm, turnover this year is expected to surpass the post dollarization high of US$413 million recorded in 2009. Last year turnover dropped to US$393 million.

However, there are now fears that President Robert Mugabe’s announcement of company seizures will lead to capital flight on ZSE. Mugabe said government will take over foreign companies in response to the sanctions imposed on the country by western nations.