ZSE continues self-correction as new day beckons

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HARARE,– The ZSE industrial index plunged 10,48 percent on Monday to close at 387,38 points, resuming the sharp downward trend which started on Wednesday last week emanating from the ongoing political upheaval.

To date, the local bourse has lost $4,1 billion since Wednesday last week, as investors offload equities with expectations that the market will retrace, thereby fuelling a sell off which has seen most stock prices dropping, in particular major heavyweights such as Delta and Econet.

The market capitalisation stood at $11,1 billion on Monday while a total market turnover of $2,9 million was recorded on the local bourse.

The largest company by market cap , Delta lost 19,52 percent to trade at 163,98 cents while the second largest company Econet eased 19,93 percent to settle at 107,3 cents.

Other heavyweights Seedco and Old Mutual eased 20 percent and 19,57 percent to settle at 214,75 cents and 925 cents respectively.

Lafarge also eased 19,43 percent to trade at 144 cents while Barclays and Meikles eased 16,6 percent and 10,5 percent to settle at 7 cents and 34 cents respectively.

Additionally, PPC, TSL and African Sun eased 19,43 percent, 16,36 percent and 7,3 percent to trade at 219,93 cents, 461 cents and 3,8 cents respectively.

The mining index remained flat 134,4 points.

Foreigners sold shares amounting to $870,055 compared to buys worth $486,871.

Analysts opine that the unfolding political events will continue to put pressure on the market and its turnover is expected to remain depressed. – Source