ZSE dropped more than $1bln prior to Mugabe resignation on Tuesday

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HARARE,– The Zimbabwe Stock Exchange (ZSE) market capitalisation lost more than $5 billion in 5 days, as equity prices took a nosedive owing to the political uncertainty in the country.

Both the industrial index and mining index lost 10,36 percent and 3,41 percent on Tuesday to close at 347,25 points and 129,82 points respectively.

The mainstream index has so far dropped 35 percent since Wednesday when the market started to respond to the political crisis.

Market capitalisation stood at $9,9 billion on Tuesday while $2,6 million was recorded in market turnover.

The largest company by market cap , Delta lost 19,87 percent in the day to trade at 131,4 cents. Delta, which is used to track the ZSE performance by virtue of being the major counter contributing 16,53 percent (26,5 percent prior to the news) to total market capitalisation , has lost 59 percent since last Wednesday.

Other heavyweights, Old Mutual eased 19,89 percent to close at 741 cents in the day while Seedco and Innscor shed 18,42 percent and 9,68 percent to close at 175,2 cents and 140 cents respectively.

Additionally, Axia and Barclays dropped 19,8 percent and 19,71 percent to settle at 20,05 cents and 5,62 cents respectively.

Lafarge also lost 19,37 percent to trade 144 cents

Fidelity and Meikles shed 15,38 percent and 15,21 percent to 11 cents and 28,83 cents respectively while Turnall and Zim papers lost 15,25 percent and 15,38 percent to close at 1 cent and 1,1 cents respectively.

NMB and OK Zimbabwe eased 10 percent and 4,11 percent to close 9 cents and 24,72 cents respectively.

ZB Financial Holdings and Hippo lost 5,26 percent and 3,55 percent to trade at 36 cents and 170 cents respectively.

On the mining space, Bindura eased 12,89 percent to close at 3,92 cents while other mining counters remained at previous day prices.

Foreigners were net buyers in the day, disposing of shares worth $717,183 compared to buys worth $1,65 million.