Zim Stock Exchange bounces back

0 1,355
Sindiso Mhlophe

FINANCE minister Mthuli Ncube yesterday said the Zimbabwe Stock Exchange (ZSE) will reopen with effect from Monday, after it had been suspended pending investigations into alleged illegal financial activities.

This comes as the government was under pressure to reopen the ZSE as investors were concerned about losing their investments, while analysts warned that the suspension threatened to further erode the much-needed business and investor confidence in the country.
In a statement last night, Ncube said following investigations, the Financial Intelligence Unit (FIU) had established that some market players were violating the rules of the ZSE and best trading practice.
“…In particular, the Old Mutual Implied Rate, (OMIR), was observed to be the key driver of parallel market pricing behaviour, 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 determination of foreign exchange rates in the market.
“Given the findings of the inquiry, government has taken the decision to allow trading on the ZSE to resume on August 3, 2020,” Ncube said.
He added that three internationally-listed stocks, Old Mutual PLC, SeedCo International and PPC, would remain suspended from trading locally for the time being, while further consultations on the way forward regarding their relisting were being made.
“In the meantime, further investigations into the market conduct by some identified participants, brokers, asset managers and share market investors, are being conducted by the relevant regulatory and security agencies and the findings will result in suitable actions being taken.
“The government of Zimbabwe remains committed to restoration of order and the removal of aberrations on the financial markets in order to maintain the credibility and integrity of Zimbabwe’s financial markets so that they continue to play a critical role of attracting global capital into Zimbabwe,” Ncube further said.
Last month, the government suspended the ZSE, agent and merchant lines on mobile money platforms in a bid to curtail the black market exchange rate which was running amok and driving price of goods and services up.

Leave A Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.