20 January 2013

Zimbabwe: ZSE Traded Shares Tumble

Statistics from ZSE showed that annual turnover was US$448 179 265,90 down from US$477 523 919 recorded in 2011. The turnover recorded in 2011 remains the highest since the country embraced multiple currencies in 2009.

This is the second time that annual turnover had taken a dip in four years. After recording a turnover of US$413 976 723,75 in 2009, ZSE registered a dip in annual turnover a year later closing at US$391 572 192.

The dip in annual turnover will hit hard the coffers of ZSE, stockbrokers, Securities Exchange Commission and government as the stakeholders benefit from the trading of shares on the bourse.

ZSE get commission on the buying and selling of shares.

Stockbrokers derive their income from the 1% commission levied on the buying and selling of shares and a fixed charge of US$2 per transaction.

Stockbrokers also derive income from advisory works.

The Securities Exchange benefit from the 0,18% SEC levy, while government share of ZSE transactions comes from 0,25% stamp duty and Value Added Tax, at 15% of brokerage.

Foreign investors remained the biggest driver of activity as they were net buyers--buying more than they sold--during the year as locals are hamstrung by the liquidity constraints.

The stock exchange is a measure of the health status of a country and its activities are closely followed by investors.

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