ZSE counters under probe

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The Securities Commission of Zimbabwe says it has instituted investigations into unusual price movements of some stocks on the Zimbabwe Stock Exchange (ZSE).

In stock market trading, unusual price movements can be described as a deliberate attempt to interfere with the free and fair operation of the market and create artificial, false or misleading appearances with respect to the price of, or market for, a security, commodity or currency.

The Securities Commission of Zimbabwe has noted a disturbing trend over the past years, where unusual price movements are exprienced at the end of a quarter and also at the end of the year, the commission said in a statement yesterday.

The price movements are apparently not supported by any fundamentals.

Last year, the Ministry of Finance and the Reserve Bank of Zimbabwe, through the ZSE ,suspended trading in Rainbow Tourism Group and Afre Corporation shares following suspected irregular inter-company transactions.