Zim Stock Exchange records biggest drop in over a year

Harare - The Zimbabwe Stock Exchange recorded one of its biggest drops in recent times on Thursday as buyers adopted a wait-and-see strategy amid the political impasse between the country's military and President Robert Mugabe.

By the close of trading, the main Industrials Index had lost 7.46%, its biggest drop in more than a year, to settle at 487.93.

In terms of value, the ZSE shed as much as $1.1bn, taking its overall market capitalisation to $13.8bn from highs of more than $15bn.

A total $31.1m was invested, with the bulk of the funds going into telecoms company Econet.

Analysts said buyers had adopted a cautionary stance amid negotiations between the military and Mugabe.

This week, the Zimbabwe Defence Forces took control of the country in what they called an effort to pacify a degenerating political, social and economic situation in the country which if not addressed, could result in violent conflict.

On Friday morning the Zimbabwe Defence Forces announced that significant progress has been made in their operation to weed out criminals around Mugabe, adding that they had accounted for some of the criminals to bring them to justice, although others are still at large.

According to a report in state-owned newspaper The Herald, the army is currently engaging with Mugabe, who is the commander-in-chief, on the way forward and will advise the nation of the outcome as soon as possible.

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