The Zimbabwe Stock Exchange , which received a boom last year with 10 billion shares valued at $650 billion changing hands, has been on a free fall with the key industrial index falling by 13 percent and the mining index by 27 percent in the first quarter of this year.
Share prices of a whopping 59 out of 82 counters declined, one by as much as 97 percent. Two counters, Barbican now under curatorship, and First Mutual were suspended. First Mutual is challenging its suspension, the second this year.
The industrial index kicked off at 103 495 last year and ended at 401 542 having peaked at 754 604 in August. It was down to 347 708 at the end of March.
The mining index which rose by 1854 percent last year to close at 127 571 was down to 92 555 at the end of March.
The market was largely driven by speculators who were trying to beat escalating inflation. The speculation was brought to an abrupt end by central bank governor Gideon Gono’s monetary policy with which he is trying to reduce inflation from over 600 percent to less than 200 by the end of this year.
Gono declared inflation the country’s number one enemy because it retarded growth and bred conflict between savers and borrowers.
He said the major cause of inflation were:
Top five performers in the first quarter | |
---|---|
Old Mutual | 209% |
Falcon | 208% |
Wankie | 90% |
Barclays | 71 % |
Phoenix | 53% |
Bottom five performers in the first quarter | |
---|---|
Finhold | -97% |
Gulliver | -93% |
M & R | -75% |
General Belting | -73% |
Radar | -72% |
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