Stock market crashes, loses $1,2bln as Zim waits on Mugabe exit

HARARE, November 16 (The Source) – The Zimbabwe Stock Exchange mainstream index crashed on Thursday, dropping 7,46 percent to 487,93 points while the market saw its market value falling by $1 billion as political tensions remain high after a military takeover of the country.

As negotiations between President Robert Mugabe, who has been under house arrest at his private residence but has reportedly moved to the State House, the military and South Africa mediators, investors are either in full panic mode or expect normalcy to return to the economy in the expected new political dispensation.

Thursday saw the biggest pull back on the market since the onset of the bull run in October last year.

The mining index, which was constant in the week, also eased 2,69 percent to settle at 134,40 points.

The stock market also witnessed a huge selloff, with $31,5 million worth of shares traded in the day, the the third biggest since dollarisation in 2009.

Market capitalisation dropped by $1,2 billion to $13,8 billion from $15 billion in the previous day.

The largest company by market capitalisation, Delta eased 19,96 percent to settle at 254,50 cents.

Mobile operator, Econet lost 8,83 percent to trade at 167,47 cents while Seedco eased 1,12 percent to settle at 317 cents.

Edgars dropped 19 percent to settle at 5,20 cents.

PPC and Lafarge also lost 17,20 percent and 10 percent to trade at 272,79 cents and 144 cents respectively.

However, Proplastics and RioZim gained 11,84 percent and 0,21 percent to close at 8,5 cents and 120 cents respectively.

On the resources index, Bindura eased 10 percent to settle at 4,50 cents . The other mining counters, Hwange and FalGold remained unchanged at their previous trading prices.

Foreigners were net sellers in the day , disposing of shares worth $7,1 million compared to a paltry foreign purchase of $90,786.