Increased Activity On The ZSE The Day After Mugabe’s Resignation, Turnover Up 384,63%

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We have been following the performance of the Zimbabwe Stock Exchange (ZSE) religiously these past few months.

We saw how the ZSE became the best performing stock exchange in the region in the few months leading up to November, reaching unprecedented heights when market capitalisation reached $15 billion.

Then we saw the tumble that began when the military took over government when market capitalisation dropped by over $5 billion in just 5 days.

On the day that Mugabe resigned, the ZSE continued to decline but it was interesting that foreigners were net buyers on that Tuesday.

Wednesday – The day after Freedom Day

The main industrial index eased 5,07% while the mining index remained flat. The mining counters are Bindura, Falgold, Hwange and Riozim. All other counters fall in the industrial index.

The turnover, the total value of shares traded on the day jumped 384.63% to reach $12.4 million. The number of shares traded increased by 31% to 12.9 million shares.

The market capitalisation continued to fall but at a slower rate to the one before Mugabe’s resignation. There is a little bit more certainty as to the political future of the country. Market capitalisation stood at $9.4 billion.

The drop does not worry analysts because it is seen as a self correction of the stock market. It was believed that in the months leading up to November the ZSE performed as well as it did because of panic buying which inflated share prices. That the stock exchange is self correcting is seen by analysts as a sign of confidence by investors.


On Wednesday foreign buys increased to $2.2 million compared to $1.65 million on Tuesday.

That may be but foreigners were net sellers on the day. They sold shares worth $4.1 million compared to buys worth $2.2 million. On Tuesday foreigners disposed of shares worth $717,183 and that means it was a 465% jump in sales on Wednesday.

This scenario is representative of how we all feel. Some are optimistic that the resignation of Mugabe presents Zimbabwe with the opportunity to chart a new path, Some feel with Mnangagwa it will be more of the same.

We see how the number of shares bought by foreigners increased, these represent the optimists. At the same time the number of shares sold increased as some need more time to evaluate where the country is headed.


  1. Alex

    Leonard that was the best market turnover ever. I’m interested in stocks and shares it is high time as Zimbabweans we need to invest on ZSE. Unfortunately we tend to watch JSE, LSE etc. The Whites (foreign buys) actually made money before the celebrations. Let’s get in touch @Leonard

  2. Realistic

    It’s bubble my friend… Don’t play the race card cause green is better white or black… Foreigners are following money and most stable markets are elsewhere… What they put in zse is the leftovers… It’s moved for 15b and 9b…. Now definitely not the time to invest because it’s still got long way to fall from those over valued prices…

  3. VAD

    When we were busy running up and down streets, foreigners were busy playing strategy with the Capital market. A Lesson learnt the hard way