Zim stocks fall despite foreign buys of $3mln

Zim stocks fall despite foreign buys of $3mln

HARARE, February 8 (The Source) – Zimbabwe’s stocks backpedalled on Thursday, but foreign buyers splashed $3 million the day after the central bank said it would allocate more money to a fund allowing offshore investors to take out their earnings.

Harare is battling a chronic shortage of bank notes that has left offshore investors struggling to take their earnings out. In September last year, the central bank set up the Portfolio Investment Fund to facilitate the repatriation and in his monetary policy on Wednesday, governor John Mangudya said a portion of the $400 million nostro stabilisation facility from the Africa Export and Import Bank (Afreximbank) would be allocated to the fund.

Foreigners bought shares worth $3,05 million compared to sales amounting to $1,08 million.

The main All Shares index dropped 0,54 percent on Thursday to 90,06 points, weighed down by losses in cigarette maker BAT.

BAT eased 10,55 percent to 2,500 cents with marginal losses in Econet and SeedCo.

Gains were in Simbisa and Innscor who rose 5 percent and 0,46 percent to 42 cents and 82,63 cents respectively.

Market capitalisation stood at $8,6 billion and turnover amounted $4,5 million in the day.