THE Zimbabwe Stock Exchange (ZSE) will not relegate counters from the bourse, but plans to set up a second tier market for small- to-medium enterprises (SMEs), it has been learnt.
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This comes against calls by business players to delist inactive counters that are making up the numbers.
ZSE chief executive officer Alban Chirume said last week that while some counters were inactive, they had managed to adhere to the listing requirements such as publishing financial results timeously.
“We are not looking at moving any of the counters that are not performing at the ZSE. Counters cannot be relegated. We are working on the second tier market to create a market for small and medium enterpirses. It will be the choice of companies that are not performing well at the ZSE to move,” Chirume said.
Despite the exchange having 63 listed counters, 10 companies constitute more than half of ZSE’s market capitalisation.
In the first half of the year, ZSE delisted eight firms — Cairns, Apex, Gulliver, Steelnet, Lifestyle, Redstar, TZI and Barbican—for various reasons. Only Lifestyle requested to be delisted.
Chirume said companies on the market have failed to raise capital due to the current liquidity challenges.
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Chirume said stock exchanges in the Southern African region have plans to trade across borders, but its efforts were being stalled by lack of funding.
He said the African Development Bank has agreed to provide the financing required and was in discussion with stock exchanges.
The initial phase of the project would have the JSE, Botswana and Namibia stock exchanges, Chirume said.
The ZSE will automate in the first quarter of 2014, a move that will increase trading hours and enhance transparency.
