Old Mutual remain suspended as ZSE resumes 03 August

Old Mutual remain suspended as ZSE resumes 03 August

Staff writer

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.