Profiling the ZSE sectoral indices
In this week’s column, the Zimbabwe Stock Exchange (ZSE) is profiling the ZSE Financials Index.
The index is part of the ZSE sectoral indices.The sectoral indices are designed to
represent the performance of Zimbabwean companies, providing investors with a
comprehensive set of indices, which measure the performance of the major industry
segments of the Zimbabwean economy.
ZSE follows the Global Industry Classification Standard (GICS®) in classifying the listed
companies.
The ZSE Financials Index represents companies in the field of finance including banks,
diversified financials, insurance, mortgage and real estate investment trusts.
Index Calculation Methodology
The ZSE uses market capitalisation weighting methodology in the computation of all
indices. The market capitalisation is an approximation of the market value of the listed
entity calculated by multiplying the entity’s last Volume Weighted Average price by the
number of securities in issue.
The ZSE Financials Index was introduced in January 2020 and was calculated backwards
to January 2018 which is the time where the ZSE benchmark index otherwise known as
the ZSE Allshare Index was first constructed.
The index gained 82 percent in the year 2022 up to December 14, 2022 to close at
25,478.67 points.
Information provided in this article is for educational purposes and does not constitute
financial advice. You should obtain independent advice from a Registered Stockbroker or
Financial Advisor before making any financial decisions.
Please note that past performance cannot be relied on as an indication of future
performance. It is important for all prospective investors to carefully consider their
financial situation and consult a financial advisor or stockbroker in order to understand
the risks involved and ensure the suitability of their situation prior to making any
investment decision.-The Herald
