Godfrey Marawanyika and Antony Sguazzin Harare
Zimbabwe’s main stock index plunged 11 percent yesterday, its biggest one-day decline since 2009, after President Robert Mugabe won a presidential election to extend his 33 years in power as his main rival refused to accept the outcome.
The benchmark Zimbabwe Stock Exchange industrial index fell to 205.6 points from 231.21 by the close of trade in Harare, said IH Securities, a local brokerage. The Zimbabwe Stock Exchange had not yet released the day’s official figures.
The index of mining stocks fell 2 percent.
Mugabe won 61 percent of the vote in results released by the Zimbabwe Electoral Commission on Saturday, while his Zanu-PF party won a two-thirds majority in parliament.
His party, accused by the Movement for Democratic Change of rigging the election, is pushing policies including a law that compels foreign companies to cede 51 percent of their assets to black Zimbabweans or the government.
“It’s post-election panic,” Carla Simleit, an analyst at IH, said from Harare. “It’s reflective of the uncertainty that’s around the elections.”
Brewer Delta, Zimbabwe’s biggest firm by market value, fell 20 percent to $1.20 (R11.80). Edgars Stores Zimbabwe fell 29 percent while Truworths Zimbabwe lost 17 percent.
“People are watching Zimbabwe with their finger on the trigger,” Francois Conradie, an analyst at NKC Independent Economists in Paarl, said.
“The business environment is completely unpredictable. The government… isn’t embarrassed with their indigenisation drive.” – Bloomberg