Old Mutual remain suspended as ZSE resumes 03 August
HARARE, The Zimbabwe stock exchange saga has now sucked in brokers, asset managers and share market investors as the Financial Intelligence Unit concludes investigations on the alleged malpractice on the bourse.
Finance minister Mthuli Ncube said the ZSE will resume trading on the 3rd of August but the three international listed counters which are Old Mutual , PPC and Seedco International remain suspended as government seeks a suitable solution to accommodate them.
In a statement , Ncube said in relation to the to the FIU, disciplinary action will be take n on the other market players after further investigations by the responsible authorities are concluded.
“Given the findings of the inquiry, Government has taken the decision to allow trading to resume on 3 August 2020. However the three internationally listed stocks namely Old Mutual, Seedco international and PPC will remain suspended from for the time being as further consultations continue on the best way forward regarding their listing under suitable rules. The public will be updated periodically on the progress,” he said.
He added that, “in the meantime further investigations into market conduct behavior by some unidentified market participants (brokers, asset managers and share market investors) are being conducted by relevant regulatory authorities and security agencies and the findings thereof will result will result in suitable action being.
Mthuli said the report has found out that whilst there is no observed evidence on the direct involvement of the listed entities themselves significant evidence of a strong link between the price behaviors and transaction patterns on internationally listed shares and parallel market was exchange rate was also established with varying degrees of casualty.
“In particular the OMIR was observed to be the key driver of parallel market pricing behavior with many market players in the real economy using this highly visible rate as a benchmark for forward pricing and costing of goods and services as well as deterioration of foreign exchange rates in the market.”
Last month Government ordered ZSE to suspend operations following the alleged unprecedented speculative behavior and destabilization on the bourse.