Investors on the Zimbabwe Stock Exchange(ZSE) have taken a wait and see attitude as the market awaits half-year results for companies with December year-end. The Herald reports that returns are likely to be depressed and below expectations due to lack of working capital.
A report by Kingdom Financial Holdings Limited Stockbrokers noted that stocks are likely to remain the best investment option given the lower returns on property and cash investments.
“The scrapping of statutory requirements should see more funds from pension funds and insurance companies being channelled to the equities market since it has been giving good returns so far,” Kingdom said.
The Zimbabwe Stock Exchange has seen low volumes and values of trade due to low liquidity in the market. Meanwhile the demutualisation of the Zimbabwe Stock Exchange is expected to unlock value in the local stock market. The demutualisation process if successful, would enable the ZSE to raise funding for it’s activities from the new shareholders.
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