ZSE approves Securities and Exchange rules

THE Zimbabwe Stock Exchange (ZSE) has approved Securities and Exchange rules of 2019, which allow the local bourse to receive applications for listing of exchange-traded funds (ETFs) and exchange-traded notes (ETNs).

ZSE recently introduced sectoral indices designed to represent the trading performance of different companies listed on the local bourse following the adoption of the Global Industry Classification Standard in classifying the listed companies.

In a statement, ZSE said the approval was sought and granted by the Securities and Exchange Commission of Zimbabwe in terms of section 65 (3) of the Securities and Exchange Act in Chapter 24:25.

“ZSE wishes to advise stakeholders on the approval of the Securities and Exchange (Zimbabwe Stock Exchange Listings Requirements) (Amendment) Rules, 2019 and the Securities and Exchange (Zimbabwe Stock Exchange Market Making) rules 2019,” read the statement.

“The listing rules amendment incorporates exchange traded products listings requirements which means ZSE is now able to receive applications for listing of ETFs and ETNs.”

The local bourse said following the approval of the rules it will also be able to process applications for prospective market makers.

Meanwhile, ZSE began the year on a high note sustaining gains for the second consecutive week this year as big-cap counters were the major drivers of both value and volume.

The equities market closed 2019 on a positive note, yielding a 57 percent gain as investors turned to stocks as a safe haven for investment.

The year was characterised by economic volatility mainly due to inflationary pressures, which helped push demand for stocks as other investment channels such as the money market became unattractive.

Currency reforms were among the top highlights for the year which saw the Reserve Bank of Zimbabwe establish an interbank market for foreign currency, introduction of local currency and banning of foreign currency for local transactions with the exception of other sectors such as tourism.

The conversion from a multi-currency system to a local mono-currency meant an increase in local dollars’ liquidity, which found its way on the stock market.

However, the policy changes also had a knock-on effect over investor confidence as the market witnessed a wait and see attitude by foreign investors. —Herald