By Staff Writer
The Zimbabwe Stock Exchange will resume trading on August 3, barely a month after the government halted trades citing underhand dealings that manipulated the value of the Zimbabwe dollar.
The local bourse became the only silver lining for Zimbabwe at a time the economy was facing serious headwinds. Finance minister Mthuli Ncube said the ZSE would resume trades without three dual-listed stocks—Old Mutual, PPC and Seedco—which authorities blamed for the weakening domestic currency.
This prompted the Financial Intelligence Unit to carry out a probe into the goings-on of the local bourse. The investigation vindicated the three fungible stocks.
“Whilst there was no observed evidence of the direct involvement of the listed entities themselves, significant evidence of a strong link between the price behaviour, and transactions patterns on internationally-listed shares namely Old Mutual Plc, Seedco International and PPC, and the behaviour of parallel market exchange rate was also established with varying degrees of casualty,” Ncube said in a statement.
“Given the findings of the inquiry, the government has taken the decision to allow trading on the ZSE to resume on 3 August 2020…In the meantime, further investigations into market conduct behaviour by some identified participants are being conducted by relevant regulatory and security agencies, and the findings thereof will result in suitable actions being taken.”
Until its suspension which was announced on June 26, the all-share index of the ZSE had jumped 677% since beginning the year, even as economists expect the gross domestic product to shrink by 10%. Get all COVID-19 statistics for Zimbabwe from COVID-TRACKER