Factors Influencing the Zimbabwe Stock Exchange Performance (2002-2007)

Kosmas Njanike, Pension Katsuro and Michael Mudzura
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Kosmas Njanike: Bindura University, Zimbabwe
Pension Katsuro: Bindura University, Zimbabwe
Michael Mudzura: Bindura University, Zimbabwe

Annals of the University of Petrosani, Economics, 2009, vol. 9, issue 2, 161-172

Abstract: This paper assesses the factors that influenced the Zimbabwe Stock Exchange’s performance from 2002 to 2007. The study seeks to identify and define the major drivers of the bourse during this period and use them to guide an investor on the ZSE or any other stock exchange in a developing economy. Despite the shrinking of the economy since 2000, the stock market inversely reacted to the factors that affected the economy negatively. The ZSE was driven mainly by speculation as investors sought to hedge against hyperinflation. The decline of the Zimbabwe economy during that period caused capital flight to the stock market pushing prices up hence huge profits. The real factors that affect share investment and the stock market in general were addressed, giving insight to the stock investors. The study recommends that stock investors should keep track of the general and unique factors that have an impact on their investments.

Keywords: ZSE Performance; Speculation; Hedging; Investment; Inflation (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pet:annals:v:9:i:2:y:2009:p:161-172

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