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.
