In the five-month period, foreign investors old $98,63 million worth of shares up from $55,79 million in the same period last year
Business Editor—
Data from the Zimbabwe Stock Exchange shows that there was an increase in the number of shares sold by foreigners in the five months to May against last year as sentiment on the economy remains weak but overall foreign investors continued to dominate trades accounting for the bulk of the $205,91 million turnover.
In the five month period, foreigners sold $98,63 million worth of shares from $55,79 million in the same period last year, an increase of 77 percent but the value of shares bought increased to $133,4 million from $111 million. Month-on-month there was a 32 percent drop in the value bought from foreigners at $21,84 million in May from $32,17 million in April.
With no economic solution in sight, trading on the ZSE is subdued, dominated mostly by the big three counters, Econet, Delta and Innscor. Local buying has remained weak due to an illiquid economy.
Overall it has been a bumpy ride since the beginning of the year with only 12 stocks having gained year-to-date.
Trading sessions have been relatively weak with the market closing in black in 43 days out of the 106 trading days. The gains were marginal and rarely breached the 1 percent mark. The Industrials Index closed May with a 13,47 percent loss.
Yesterday, the stock market maintained an upward trend after gains in Econet and Innscor lifted the main index. The market is expected to continue recording marginal gains as investors are not willing to release shares at the current prices.
At present the longest rally was the 10-day winning streak from April 23 to May 7. Meanwhile, stockbroking firms are set to take a marginal knock in brokerage fees to make way for the central securities depository levy but overall total costs for buying and selling on the Zimbabwe Stock Exchange will drop.
According to the proposed new fee structure which will apply from the day the Statutory Instrument will be gazetted to June 30, 2015, brokerage fees will be 0,92 percent from the current 1 percent.
The CSD levy will be charged at 0,12 percent on either side (buying and selling) while the investor protection levy will fall away for the first year to allow for the business to stabilise.
Thereafter the SEC levy, ZSE levy and CSD levy will drop marginally to make way for 0,025 percent IP levy. From next year transaction costs will be 4,136 percent.