"Another threat was that of the army chiefs, who said they would not salute anyone other than President Robert Mugabe or a member Zanu (PF). This seriously affected investor confidence and performance on the ZSE," said the analyst, who declined to be identified.
He said another political threat was the threat by army chiefs that they would force Mugabe to continue ruling until he "dies in office".
Another factor was "dark cloud within the financial services sector" after the scandal at Renaissance Financial Holdings Limited unfolded.
RFHL boss, Patterson Timba, has been in the news for allegedly siphoning off funds belonging to customers using his shelf companies in cahoots with his friends and relatives.
"The equities market closed the week in the red weighed down by major losses especially in heavyweight counters such as Econet, Innscor Corporation, Delta, Meikles, SeedCo and Old Mutual," he said.
"This triggered a widespread sell off that saw the Industrial Index dip -2,43 percent to 162.84 points and with it the Year-To-Date gains narrowed to +7,65 percent.”
Post published in: Business Analysis