Buyer snaps 74 pc of ZSE listed Bindura

The Zimbabwe Stock Exchange continued to lose ground on Thursday as foreign investors as well as those looking to boost their liquidity positions continue to sell off the market.

According to market watchers, foreign investors are selling off local stocks to repatriate their investments long trapped in the country prior to the introduction of the auction system.

The auction system allots 15 percent of available foreign currency for repatriation of disinvestments, dividends as well as payment of foreign loans.

This, analysts say, has resulted in selling pressure on the bourse.

Selling pressure, according to stockbrokers, is also coming from local investors who had long hedged in the stock market but are selling off amid exchange rate stability on the auction system and the tapering off of inflationary pressures.

Others are also selling off stocks to boost their local currency liquidity positions amid tightened money supply by monetary authorities.

The highlight of the day was however the $3,43 billion deal in Bindura Nickel Corporation. This is after 926,775,700 shares changed hands.

The deal constitutes 74 percent shareholding in the company which means a new major shareholder is now in control.

Meanwhile, by the close of trading, all five major indices on the ZSE were in the negative territory although the losses are now marginal compared to those of last week.

The ZSE All Share Index was down 0,65 percent while the Small Cap Index was the biggest loser after shedding 0,75 percent.

Top fallers for the day included Edgars down 12,13 percent, Ok Zimbabwe down 5,52 percent and Zimpapers down 4,17 percent.

Ariston was however the day’s biggest loser after it lost 18,24 percent to 146,9 cents.

The market was however not short of risers with Masimba leading the gainers up 9,22 percent to 218,44 cents.

RioZim, FCB, Simbisa, and Seedco also recorded marginal gains.-chronicles