Erratic
economic
policy,
high
inflation,
and
currency
instability
have
for
years
discouraged
foreign
investment
in
Zimbabwe.
But
economic
fundamentals
are
improving
and
a
new
gold-backed
local
currency
–
the
Zimbabwe
Gold
(ZiG)
–
has
largely
held
its
value
this
year.
Foreign
participation
on
the
Zimbabwe
Stock
Exchange
rose
to
26.53%
in
the
second
quarter
from
15.39%
in
the
previous
quarter,
the
newsletter
published
on
Thursday
said.
Foreign
trades
jumped
153.94%
to
ZiG
743.6
million
($27.7
million),
up
from
292.8
million
in
Q1.
In
comparison,
foreign
investors
accounted
for
over
40%
of
activity
on
the
ZSE
in
the
early
2010s.
Total
market
turnover
on
the
ZSE
increased
53.14%
to
ZiG
1.49
billion
in
the
quarter,
the
newsletter
said.
The
total
market
value,
however,
fell
3.08%
to
ZiG
62.64
billion,
while
the
ZSE
All
Share
Index
declined
3.91%
to
close
the
quarter
at
197.23
points.
“The
total
turnover
for
the
top
five
companies
contributed
86.19%
of
the
equities
turnover
and
81.01%
of
the
total
market
turnover
for
the
period
under
review,”
the
newsletter
said.
On
the
Victoria
Falls
Stock
Exchange,
a
U.S.
dollar-denominated
bourse
designed
to
attract
offshore
capital,
turnover
reached
$15
million
in
Q2,
while
market
capitalisation
slipped
to
$1.25
billion
from
$1.29
billion
in
the
previous
quarter.
Average
foreign
participation
on
the
exchange
stood
at
18.73%.
An
uptick
in
participation
and
turnover,
alongside
governance
reforms
like
the
ZSE’s
self-listing
earlier
this
month
could
lay
the
groundwork
for
further
recovery
in
the
second
half
of
the
year,
analysts
said.
The
International
Monetary
Fund,
meanwhile,
has
welcomed
the
ZiG’s
stability
but
is
urging
fiscal
and
monetary
discipline.