Zimbabwe stock plunge after Mugagbe’s re-election

[abujagirl]

Zimbabwe’s main stock index plunged 11 percent yesterday after President Robert Mugabe won a presidential election to extend his 33 years in power. This is the biggest one day plunge since 2009.

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 index of mining stocks fell 2 percent.

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.

“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.”