adminrestructure their portfolios in the face of the global financial crisis.
Mining stocks also dropped a significant 38,2 percent year-to-date from 200,40 points to close at 123,82 points on yesterday’s trades.
The industrial index opened the year at 151,27 points before dropping to 144,06 points yesterday.
Market capitalisation in January was US$4,1 billion and closed yesterday at US$3,6 billion.
This means equity investors have watched their investments shrink by 11 percent or US$500 million since the beginning of this year.
Foreign investors have remained net sellers on the local bourse as they are seized with developments in their markets, particularly the uncertainty relating to the Greek debt crisis.
That crisis is said to threaten the survival of the eurozone.
Each new prediction of default sends waves of panic and flurries of speculation through the markets.
International markets have been trading sideways on news headlines suggesting progress or delays in resolving the eurozone crisis.
Lack of liquidity on the local market has also been exacerbated by local investors who have developed a phobia towards the equities market in preference for money market investments.
The stock market, which underperformed money market investment last year, is also heading for the same fate this year with a year-to-date nominal loss of 4,1 percent before factoring inflation, currently at 4,2 percent. This is against average money market rates of between 15 and 20 percent.
Local investors whose portfolios were predominantly equities upon dollarisation, are looking at other investment options, such as properties and alternative markets to boost their risk-adjusted return.
Yesterday, the industrial index lost 0,65 percent to close at 144,06 points, weighed down by Delta shedding off US3,1c to trade at US72,99c.
Hotel group Meikles and insurance giant Old Mutual retreated a cent each to close at US22c and US125c respectively. AICO Africa and M&R pared down US0, 40c to trade at US19,60c and US10,10c.
The mining index recovered 1,07 percent to close at 123,82 points after Hwange added US0, 60c to settle at US46,10c and Bindura moved up US0,10c to settle at US5,20c.
Falgold and RioZim were unchanged at US7c and US50c respectively.
Online Reporter