Harare — SOME foreign investors on the Zimbabwe Stock Exchange have instructed their stockbrokers to put on hold all new orders citing "political uncertainty."

This comes in the wake of MDC-T's announcement that it had "disengaged" from the inclusive Government three weeks ago.

The blood bath, which started on Friday last week continued this week with the mainstream industrial index easing 5,2 percent after three weeks of strong gains.

On Friday, the industrial index retreated 2.60 points (1,50 percent) to end at 170,61 points mainly due to losses in BAT down US6c at US234c and Delta, which shed US2c to close at US58c.

On Monday the industrial index opened the week on a low note after shedding 2,25 points (1,32 percent) to close at 168,36 points as heavyweight counters lost ground.

The market continued on a losing streak on Tuesday, dipping 4,25 points (2,52 percent) to close at 164.11 points on the back of widespread losses with the only positive trade being recorded in CAPS up US0,30c at US2c.

Stock market analysts said the market should be subdued till the end of the week through to next week, as there is no exciting news on the market.

However, the market is looking forward to the extraordinary general meetings scheduled for next month by companies making efforts to recapitalise their businesses.

These EGMs could stimulate some market activity as some players take their positions for the upcoming events.

Though opportunities may arise from such developments, investors are likely to trade in counters that issued cautionary statements and EGM notices with caution as the market reactions are uncertain.

OK Zim issued a cautionary statement stating that they were still in talks over possible investment in their business by South Africa's Shoprite.

In the same week Pick n Pay stated intentions to increase their stake in TM Supermarkets giving the market further confirmation that investor confidence is still existent.

Ariston Holdings also issued a cautionary statement advising shareholders of ongoing negotiations to acquire some business. Short-term insurer NicozDiamond, have set November 13 as the date for its EGM to consider a US$4 million rights offer to strengthen the group's balance sheet.