Zimbabwe sharemarket sheds $NZ8.7b as stocks drop 40% after Mugabe ousted

HARARE: Zimbabwe’s stock market has shed $NZ8.7 billion, while its main index has slumped 40% since last Wednesday, when the military seized power, leading to the fall of Robert Mugabe, stock exchange data showed yesterday.

The main industrial index was at 315.12 points compared with 527.27 points on Wednesday last week, when the military announced its takeover and put former president Mugabe under house arrest. On Thursday the index fell 4.4%.

The Zimbabwe Stock Exchange had been on a rapid rise in the past two months, driven by investors seeking a safe haven for their investment.

An analyst at a local stockbroking firm said incoming leader Emmerson Mnangagwa had hit the right notes with his speech on Wednesday.

Mnangagwa said he wanted to expand the economy, create jobs and for Zimbabwe to reengage with the international community as the country has faced isolation since 1999, when it defaulted on its debt with the IMF.

The Southern African Development Community (SADC), an intergovernmental organisation, yesterday said that it was ready to work closely with Mnan gagwa and his government.

Mnangagwa was due to be sworn in as Zimbabwean president late yesterday .

Former Zimbabwe finance minister Ignatius Chombo, who was among those detained by the military in an operation against ‘‘criminals’’ around Mugabe last week, was handed over to the police, then admitted to hospital with injuries to his hand, back and legs, reports, including from a relative, said last night.

The relative, who wished to remain anonymous because of safety fears, said Chombo had been severely beaten while in military custody.— Reuters

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