ZSE capitalisation to grow

BULAWAYO - The Zimbabwe Stock Exchange (ZSE) market capitalisation has registered a more than 200 per cent growth to US$3.7 billion since the inception of the US dollar trading.

The stock market is projected to exceed US$4 billion by end of year 2009. The local bourse started trading in US dollars at the end of February this year. Presenting the 2010 national budget Finance minister Tendai Biti said the local bourses market capitalisation grew from US$1.6 billion in March to US$3.7 billion as at October this year. The ZSE is Africa`s third largest bourse with 81 listed counters and an average daily turnover of US$2 million.

It was among the best performing stock exchanges in the world in 2007 with the benchmark industrial index surging more than 12,000 per cent over 12 months. In a move aimed at attracting investors to the stock market, the Finance Minister slashed the high transaction costs on the local bourse. Transaction costs obtaining on the ZSE were pegged at a total 7.5 per cent compared to the regional levels of 3.5 per cent. The relevant stakeholders have been consulted and these have now been reduced to 3.21 per cent, he said. Stock market analysts welcomed the reduction in transaction costs saying this will attract more investors both existing and potential.

Post published in: Manufacturing

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