Zimbabwe stock market plunges after disputed Mugabe win

By Alfonce Mbizwo, HARARE, August 5 (The Source) – The stock market dropped sharply on Monday after President Robert Mugabe and his ZANU-PF party were confirmed victors in last week’s election, with the main index dropping 11 percent on thin volumes.
Most investors opted to hold on to their shares and wait for some indication on policy direction from the victors, but there was some panic selling from mostly foreign investors, traders said.
African and regional observers have passed the elections as free, fair, peaceful and credible but the West called has called the poll ‘deeply flawed’.
The biggest counter on the bourse, Delta lost 30 cents to 120 cents a share on volumes of 248 200 as almost all top 10 stocks traded in the red. The only exception was Old Mutual with marginal gains of 0.01 percent to 242,02 cents with 2 878 shares changing hands.
African Sun dropped 25 percent to 150 cents on volumes of 54 476 shares traded as the industrial index fell  25.64 points to 205.57 points in the morning session.
“There is too much uncertainty on the market and this will continue until there is a clear direction in terms of what policies the new government will pursue,” said an analyst who requested anonymity. “As a result, some investors decided to take profits on whatever gains they have made.”
The mining index was 1.33 points lower at 65 points despite having no trades after the Bindura Nickel Corporation was offered lower at 2.30 cents.