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Zimbabwe Stock Exchange Takes a Dive Following Elections

  • Jonga Kandemiiri

ZImbabwe's old currency

ZImbabwe's old currency

The Zimbabwe Stock Exchange said Monday’s industrial index plunged 25.64 points or 11.09% to close at 205.57 points following Wednesday's national elections.

The ZSE said heavyweight counters such as the beverage giant Delta lost a hefty 30 cents to close at 120 cents while Innscor shed 15 cents to trade at 90 cents.

Writing on its website, the ZSE said other heavyweight companies like Econet dropped 10 cents to trade at 58 cents and Hippo dropped 5 cents to trade at 100 cents, while Edgars and OK Zimbabwe came-off 4 cents each to close at 10 cents and 26 cents respectively.

According to the website, only two counters were in the positive territory; ZHL and Old Mutual.

Some analysts blamed the fall of the shares on the just-ended election results. President Robert Mugabe and his Zanu PF party won convincingly and investors have adopted a wait and see attitude as many fear compulsory acquisition of shares within their companies as Mr. Mugabe is expected to push his controversial empowerment policies.

Economist Godfrey Kanyenze of the Labour and Economic Development Research Institute told VOA investors don’t have confidence in the direction Zanu PF many drive the country's economy.

“The plunge is very important, it’s a very significant signal because the market operates on the basis of sentiments," said Kanyenze. "Following this landmark election it just implies that investors are shunning the stock exchange.”