zim_stock.jpgThe Zimbabwe Stock Exchange market capitalisation has increased to US$3,7 billion this month, from US$3,5 billion on the back of strong foreign investment on local stocks.

 

The local stock market is heading towards a rebound in terms of the total value of shares being traded as foreign investor participation is on an increase.

 

Latest figures from the local bourse show that the market capitalisation, which has averaged at least US$3,5 billion since January this year, has increased to around US$3,7 billion.

 

A local market analyst, Mr. Anymore Taruvinga, says inspite of the depressed industrial share volumes, the total value of shares might reach US$4 billion by end of this year.

 

“The market is on a rebound and we expect such conditions to positively affect the volume of shares, remember  the local market has been depressed due to funding challenges,” said Mr Taruvinga.

 

Market watchers say the improved trading volumes on the local market is likely to result in the market becoming a source of  fundraising for companies in need of fresh capital to increase production.

 

Meanwhile, trading on the ZSE continues to be characterised by mixed investor sentiments on various stocks.

 

However, blue-chip or heavyweight counters with a potential of yielding better returns are on demand from the investors.