ZSE confirms trading resumption without three dual listed counters

ZSE confirms trading resumption without three dual listed counters

Staff writer

THE Zimbabwe Stock Exchange (ZSE) has confirmed the resumption of trading on August 03, without three international listed firms namely Old Mutual, PPC and SeedCo International.

Justin Bgoni, the ZSE CEO, in a statement, affirmed the Finance Ministry’s statement which gave the green light to resume trading next week, without three counters.

“As a result of the communication from the Ministry of Finance and Economic Development, the ZSE wishes to advise stakeholders that;  trading resumes on 03 August 2020 and the ZSE is currently engaging Old Mutual Limited, PPC Limited and SeedCo International Limited and will make further announcements with regards to the status of three counters when trading resumes,” he said.

According to Bgoni, the trading will resume within the shortened trading hours. Pre-open session will be 0900 hrs to 09.30hrs,   Open 0930hours, Continuous 0930-1200hours, Close 1200hours and Post close 1200-1230hours.

On 28 June 2020, the Zimbabwe Stock Exchange Limited (“ZSE”) announced the suspension of trading following a directive from the Government of Zimbabwe. It also advised stakeholders that it would engage the Securities and Exchange Commission of Zimbabwe (“SECZ”) and the Ministry of Finance and Economic Development on the operational modalities that would allow to resume trading.

Ncube in a statement yesterday said, following investigations by the central bank’s Financial Intelligence Unit (FIU), it was 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.”

The Zimbabwe stock exchange saga has also sucked in brokers, asset managers and share market investors as the Financial Intelligence Unit concludes investigations on the alleged malpractice on the bourse.