Zimbabwean minister laments low trading on bourse

Zimbabwean Finance Minister Patrick Chinamasa on Monday lamented continued low trading at the country's Stock Exchange, whose main index fell by 30 percent in 2015.

Chinamasa said the poor performance at the local bourse was a reflection of low economic activity in the country.

Zimbabwe's economy is on a slowdown due to drought and low commodity prices on the international market.

Last week, the World Bank forecast growth in the southern African country to remain flat at 1.5 percent in 2016, but the government remains optimistic that the country will achieve a higher growth rate of 2.7 percent.

"Trading at the Zimbabwe Stock Exchange (ZSE) has been very low. There are companies that have delisted and this is a reflection of low economic activity," the minister said while unveiling a new board for the ZSE.

He challenged the new board to support initiatives by government to revive and steer growth in the economy.

The ZSE's industrial index has fallen from a record high of 233 points in August 2013 to 102.33 points as of Feb. 8, 2016, its lowest in six years, as investor interest in local equities wanes due to a bleak economic outlook for the country.

Market capitalization for the industrial index, which stood at 4.37 billion in January 2015, fell 30 percent to 3.1 billion in December.

The total value of shares traded on the ZSE last year was 228.6 million U.S. dollars, a decline from 453 million dollars in 2014.

Chinamasa said measures that instill confidence in the economy were critical in order to attract foreign investment on the bourse. Endit