HARARE, – The stock market closed lower at 167.34 points with the main industrial index shedding 1.02 points during the week on the back of losses in major counters Delta, Econet, Innscor and Hippo.
Analysts say there is no appetite for stocks given the economy’s weak fundamentals and the absence of government effort to provide solutions.
Remarks by newly-appointed indigenisation minister Christopher Mushohwe that he intends to adopt a hard-line approach to enforcing the controversial indigenisation law are unlikely to impress investors and could increase capital flight.
Speaking after he was sworn in as Francis Nhema’s replacement, Mushohwe backed earlier plans by government to use the country’s mineral resources as contribution to any joint venture partnership, especially in the mining sector.
“Those who want to come and invest in Zimbabwe must come and invest in Zimbabwe under the laws of Zimbabwe and surely they will get more than the value of their investment,” said Mushohwe.
During the week, market movers, Delta and Econet shed 0.99 cents and two cents to 109 cents and 63 cents respectively on notable volumes.
Turnover for the week dropped by a third to $4,98 million, compared to the $7,5 million recorded last week.
On Friday, the industrial index pared off 0.19 points after losses in Hippo and Econet. Hippo was the biggest loser, shedding off five cents to 55 cents. Econet dropped a cent to close at 63 cents while Padenga pared off 0,30 cents to 8,70 cents.
A special bargain trade was recorded in Zimplow at 9.5 cents, bringing the market turnover to $1,6 million.
On a weekly basis, the mining index retreated by 0.88 points to 66.71 points after Hwange lost 2.20 cents to 4.80 cents. – The Source