zim_stock.jpgMarket watchers say the listing drought on the Zimbabwe Stock Exchange (ZSE) is expected to persist in the near future given the obtaining liquidity constraints and unattractiveness of the bourse, a situation which has seen less than 10 counters listing over the past year.

The once attractive bourse on the continent continues to be characterised by listing drought, a development which has seen the stock market failing to surpass 80 listings.

The stock market, whose market capitalisation is still below US$5 billion has been hit by a wait and see attitude by investors given insignificant returns from the bourse.

Market analyst, Mr Rangarirai Mutungwazi believes the listing drought is likely to persist in the near future given the unattractiveness of the market.

Meanwhile, 10 blue chip counters continue to dominate trading on the stock market accounting for more than half of the market capitalisation.

Economic analyst, Mr Chris Mugaga highlighted that failure to comply with the country’s indigenisation law has seen some failing to list on the market.

In the absence of long term funding for industry, economic analysts believe ZSE could be an alternative to deal with the liquidity constraints.

However, little activity on the bourse has restricted firms from listing on the market.