ZSE turnover to exceed $470m

improved liquidity and continued foreign investment on the local stock market.
Since the beginning of the year to November, total value of trades on the local bourse was $432,32 million, reflecting a 10 percent improvement of the $391,57 turnover achieved in 2010.
“The turnover even surpasses that of 2009 when trading began in multi-currency system for the period 1 to 16 December 2011, turnover amounted to $29,7 million implying that as of 16 December 2011, the total Zimbabwe Stock Exchange (ZSE) turnover was $462 million.
“The improved turnover has come on the back of improved local liquidity as evidenced by the growth in exports and bank deposits as well as continued foreign investment on the local stock market,” said Kingdom Financial Holdings Limited in a statement.
The financial institution said despite the uncertainty surrounding the Indigenisation and Economic Empowerment regulations and the general elections in the country, foreign investors increased their investment in local equity by 21 percent for the 11 months to November 2011.
“Sadly, most of the money was raised locally through disposal of other equity holdings with net buying having declined by 61 percent to $44,65 million,” said KFHL, adding that to the end of the year, ZSE turnover was projected to exceed $470 million and thus implying that total commission earned by the stock broking industry improved this year compared to 2010.
The distribution of the commission, however, remains skewed with the top five brokers accounting for more than 50 percent of the total commission earned.
Meanwhile, ZSE turnover for last week totalled $16,6 million, which is a 54 percent growth over the $10,8 million realised the previous week.
Delta and Econet had turnovers of $5,89 million and $7,52 million respectively largely done as special bargains.