ZSE issues CFI Holdings trading halt

THE Zimbabwe Stock Exchange (ZSE) has suspended CFI Holdings from trading its shares to allow for the publication of its audited financial statements.
ZSE chief executive officer, Alban Chirume said the suspension of trading in the company’s shares began on January 29, 2016.

BY TARISAI MANDIZHA

“The ZSE, hereby, notifies the investing public of the suspension from trading of CFI Holdings Limited shares for the publication of audited financial statements for the year ended September 30, 2015 and investigations into trading done during the closed period,” he said.

Chirume said a trade of the company’s issued shares, which was executed on the ZSE during the closed period, was reported to the Securities and Exchange Commission of Zimbabwe.

Last week ZSE issued CFI Holdings with a trading halt, which suspended the trading of shares, charging that there was information asymmetry at the listed agri-industrial concern.

Zimbabwe Stock Exchange chief executive officer  Alban Chirume

A trading halt occurs when a stock exchange stops trading on a specific security for a certain time period.

Meanwhile, Radar Holdings is seeking approval from the shareholders for the delisting of the company’s shares from the ZSE.

In a statement, Radar Holdings Limited said: “The reason for the proposed delisting is that the group continues to underperform. After tax profits slid from
$288 006 in 2014 to a loss of $28 807 in 2015, furthermore. Compounding the group’s underperformance are the costs associated with remaining listed on the ZSE that are exuberant.

“These include but are not limited to the following annual listing fees ±$4 271, auditors costs associated with maintaining a ZSE listing interim and final accounts ±$46 000, costs associated with publications of results and notices and any other corporate actions ±$18 000 and transfer secretaries maintenance of the company share register ±$6 000.”

However, the company said the trading in shares of the company has been limited and the absence of sufficient buyers and sellers of the shares has meant that the shares were relatively illiquid.

Radar Holdings also said the size of its company did not allow it to fully take advantage of being listed on the ZSE.

Persistent economic challenges in Zimbabwe have resulted in over 10 companies either being delisted for violating of rules or voluntarily requesting termination of their listings.

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