Share

Zim bourse hits seven-year low

Harare - The Zimbabwe Stock Exchange (ZSE) dropped to a seven-year low on Tuesday as the economic environment continues to decline.
 
By the close of trading the main Industrials index was at 95.08 points, a level last seen in April 2009 just after dollarisation.
 
The ZSE's current level is 59.22% lower than the peak of 233.18 points recorded in 2013 towards the end of the government of national unity, which saw the Zimbabwean economy stabilise from the freefall of 2008.
 
Market watchers said the current bloodbath is reflective of the country's economy, which has seen even well managed and well capitalised companies such as Delta struggling. Delta has been leading the market's downward spiral and is now trading at levels last seen in February 2016.
 
At the close of trading Delta stood at 52 cents, a year-on-year (y/y) low, down from a y/y high of 105c.
 
The company, which counts SABMiller as one of its top shareholders, has been reporting declining revenues and profitability in the past two years.
 
Analysts are on record as saying the sell-off on the ZSE is a result of increased risk in the country where the “United States dollar appeal is not there any more, given the current monetary challenges”.
 
Zimbabwe is facing serious challenges in paying suppliers of its huge import bill, and is now using a priority list to determine who gets paid first. The priority list has seen excluded economic activities facing raw material and inventory shortages.
 
Cash depositing clients in the retail and wholesale service industry are only included in priority list number three, described by the Reserve Bank of Zimbabwe as “low”.
 
Foreign investors on the stock market should however not panic, as they fall under priority list number one which includes capital disinvestments, profits and dividends.
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.88
+0.3%
Rand - Pound
23.85
+0.2%
Rand - Euro
20.37
+0.3%
Rand - Aus dollar
12.31
+0.3%
Rand - Yen
0.12
+0.3%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders