“The uncertainty has arrested the influence of foreign capital. There is no new capital being pumped into local companies. Investors are trading in existing shares, which do not bring money into the companies. It is only when new shares are on offer that the companies can get new capital. This has not been happening,” he said.
Figures recently released by the Ministry of Finance showed that for the month of April turnover on the local bourse declined by 36,5 percent to $23.1 million “due to reduced foreign investor participation, as well as the toll of the prevailing liquidity constraints”. The current haggling over elections is likely to result in further depressed figures, the analyst pointed out. Volumes traded on the bourse in April declined by 36,9 percent, while average daily turnover stood at $1,15 million.
Economic analyst, Erich Bloch, said they were few investors on the stock exchange. He said investors were now waiting to see the policy direction the country would take after the elections.