THE Zimbabwe Stock Exchange Limited (ZSE) has suspended trading on the local bourse until further notice following government’s directive, Justin Bgoni, the exchange’s chief executive officer has said.
BY MTHANDAZO NYONI
“Following the statement issued by the Secretary for Information, Publicity and Broadcasting Services on 26 June 2020, the Zimbabwe Stock Exchange Limited (ZSE) engaged both the Securities and Exchange Commission of Zimbabwe (SECZ) and the Ministry of Finance and Economic Development,” Bgoni said in a statement.
“Whilst we await the guidance from our regulators on the operational modalities going forward, we notify our stakeholders that trading has been suspended until further notice.”
Government on Friday suspended mobile money transactions as well as trading on the local bourse in an effort to contain the collapse of the country’s currency.
Government said it was “in possession of impeccable evidence which constitutes a prima facie case whereby the phone-based mobile money systems are conspiring with the help of the Zimbabwe Stock Exchange either deliberately or inadvertently in illicit activities that are sabotaging the economy”
Suspension of trading on the ZSE will affect the 57 actively listed firms on the local bourse and Zimbabwe’s three mobile companies, namely, Econet Wireless Zimbabwe, NetOne and Telecel Zimbabwe.
It also affects the country’s 19 banking institutions as most have been pushing activities to mobile-based platforms in light of cash shortages.
The ban comes despite the ZSE having a market capitalisation of $228,87 billion (US$4 billion) and mobile money-based transactions totalling $19 868 651 872 (US$346 445 542,66) as at the end of the first quarter.