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Business Reporter
THE level of local investor participation on the Zimbabwe Stock Exchange has continued to shrink with their contribution to total volumes traded on the domestic bourse declining to 47 percent between 2009 and last year, ZSE chief executive Mr Alban Chirume said.
Domestic transactions declined from 82 percent in 2009, when the ZSE started trading in US dollars, to 44 percent last year.
Analysts have attributed the decline in local investor participation to the liquidity squeeze and poor performance of the economy to low level participation of local investors.
Mr Chirume said local participation has consistently weakened since dollarisation, accounting for 77 percent; 2010, 64 percent; 2011, 59 percent; 2012, 50 percent; 2013, 47 percent; 2014.
But cumulatively, local investors contributed 61 percent of the total transactions.
Mr Chirume said the automation of the ZSE, which was effected in July last year helped in improving efficiency, security for investors and better information management.
But due to the prevailing economic challenges, the ZSE automation has failed to improve both local and foreign participation.
Whereas turnover rose 172 percent in the year of automation in Kenya, in Zimbabwe turnover declined 50 percent, said Mr Chirume.
Online Reporter