BULAWAYO - Members of the public should make use of the Zimbabwe Stock Exchange (ZSE) as a vehicle for wealth creation, the bourse's chief, Emmanuel Munyukwi Munyukwi said the country was entering into a new phase and it was important that members of the public were kept informed. “There is much wealth on the ZSE and there is a need to encourage locals to participate. Currently foreigners are dominating our stock market,” he said.
There are two indices, the Zimbabwe Industrial Index and the Zimbabwe Mining Index. He said according to the regulations of the ZSE, the stock market was the first to speak about indigenisation.
Munyukwi said one of the rules was that 30 per cent of any shares in the listed company should be in the hands of the public so that they could access wealth being created by these companies. “Our major role is to mobilize resources for the economic development of the country, be it a mine development, a dam construction, and we do this through rights offers,” he said.
He said the bourse was facing challenges in terms of liquidity. “The number of shares exchanging hands is very low, about 1,2 per cent when it should be about 10 per cent a day,” he said. Munyukwi said the advantage of the ZSE was that when markets crashed it still held on.
“We all know what happened to our monies in the bank. But those on the ZSE survived,” she said. He said currently the shares were depressed but was hopeful that they would
pick up. He said the market also had the disadvantage of lacking computerization.
“But shares are cheap at the moment. Buy low and sell high. The stock market is not a casino. It needs patience. The market is not for the faint hearted,” he said.
Post published in: Agriculture