adminIn a report on Banking Sector 2013 Outlook by Econometer Global Capital, ZSE acting chief executive officer Mr Martin Matanda said there was little activity on the market owing to the looming elections.
“Only key drivers such as the elections and foreign investors have the ability to bring better prospects on the market,” he said. Mr Matanda said investors had adopted a wait-and-see attitude ahead of the harmonised elections to be held this year.
He highlighted the importance of foreign investors on the local bourse saying were it not for them the ZSE would have closed some two years ago.
The ZSE has been struggling to attract new listings since last year despite closing the year at US$4 billion market capitalisation.
However, Mr Matanda was optimistic the local bourse would reach the US$5 billion market cap by year-end.
It is estimated that the market will register a 17 percent growth to US$5, 7 billion this year, amid expectations that in the post-election period, the Government would bring positive economic policy shifts.
Financial analysts also contend that foreign buyers, generally hesitant globally prior to an election, would continue driving trades on the ZSE.
In the past year they accounted for 41 percent of ZSE’s turnover from 13 percent in 2011.
Meanwhile, Mr Matanda expressed concern at the lack of transparency on some listed counters who were found wanting when it came to meeting the disclosure requirements which are major pillars of the market.
“For example, it is strongly believed non-performing loans are higher than what is trading on the market and are difficult to collect,” he said.
Online Reporter