The Zimbabwe Stock Exchange (ZSE) has seen its market capitalization capitulate nearly 30 percent losing a significant ZWL$ 67 billion since reopening three weeks ago after over a month-long hiatus from trading, 263Chat Business has established.
The Zimbabwean government suspended the ZSE from trading end of June to pave way for investigations into allegations that the bourse was being used as a conduit for undermining the local currency through illicit money transactions.
However, since reopening on August 3, the ZSE has witnessed a rapid pullout by investors with capitalization now at ZWL$ 161.624 billion as of this morning from ZWL$ 228.577 billion on reopening day.
In real terms, the ZSE has receded to just US$ 1.950 billion using the ruling exchange rate.
The stock exchange is a significant economic indicator of the state of the economy and the continuous political interference by the ruling party in the bourse’s business seem to have spiked investor flight.
Activity has mainly seen sellers dominate the market with sentiment pointing towards investor apathy on the ZSE.
Prior to interventions by the authorities, investors were rushing to dump excess Zimbabwe dollar profits onto the bourse as they sought refuge from rapid inflation.
