ZSE reacts negatively to election outcome

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By Zimbabwe Investor on August 6, 2013. No Comments

ZSEThe stock market of Zimbabwe plunged on Monday on the back of the announcement that President Robert Mugabe won last week’s elections with a landslide margin.

Investors were sent packing on worries that the new government in Zimbabwe will reinstate the Zim dollar and deepen empowerment ambitions in the country.

During Monday’s early trade, the bourse’s major industrials indicator plunged 11.09 percent and the overall market cap of the bourse tanked to $5.34 billion from $5.97 billion.

Fin24 reports that many investors abandoned their “buy orders.”

Stocks that were heavily battered include Delta, which sagged 20 percent and mobile phone operator Econet which lost 14.71 percent.

Sugar producer, Tongaat Hulett lost 4.76 percent while Edgars plummeted 28.57 percent. OK Zimbabwe sagged 13.33 percent.

But the election outcome was rebuffed by the opposition party MDC-T, which called for the day of mourning after it was announced that ZANU-PF had won the elections.

Meanwhile, the US and UK stated their worries at the announcement that ZANU-PF had won the elections, putting Mugabe in charge of the country for the seventh term in office.

However, Jacob Zuma, the president of South Africa, the regional power, applauded Mugabe on his win.

Mugabe won 61 percent of the national vote against Prime Minister Morgan Tsvangirai’s 34 percent.