The Zimbabwe Stock Exchange continued with its dive as market capitalisation knocked off a further $1 billion in today’s trading session attributable to panic selling by investors and buyers who have adopted a wait and see strategy.
The local bourse continues to record huge losses that have knocked off close to $5 billion in less than a week as the market responds to developments on the ground.
Market capitalisation on the stock market which had reached a record level of $15 billion, closed trading today slightly under the $10 billion mark as losses were recorded in heavy weight counters.
With the market capitalisation hitting record levels, representing over 90 percent of the country’s gross domestic product, market watchers say it was overvalued and current trends may probably be a way of the market correcting itself.
By close of trade the mainstream index lost a further 10.36 percent to close at 347.25 points weighed by losses in insurance giant Old Mutual which went down by a further 1840 cents to close at 7410 cents, Seedco (seed.zw) dropped by 39.55 cents to 175.20 cents while Delta (dlta.zw) was 32.58 cents weaker at 131.40.
Other losses recorded, Econet eased 20.78 cents to 86.52 cents, as well as Innscor and Meikles.
There were no movers while Afdis, CFI Holdings, First Mutual Holdings, Truworths and Willdale traded unchanged.
Southward trading was also recorded on the mining index which lost 4.58 points to settle at 129.82 points after Bindura dropped 0.58 cents to trade at 3.92 cents.
Falgold, Hwange (hccl.zw) and RioZim remained unchanged.