Zimbabwe Stock Exchange (ZSE) will resume trading next week after more than 4 weeks suspension, but three dual-listed stocks will remain suspended.
The government halted trading on the ZSE last month, saying it was being used by speculators to undermine the currency.
The Financial Intelligence Unit, was tasked to look into the matter.
“I am pleased to advise that the investigation is now complete and a detailed review report has been submitted to the Government."
“Given the findings of the enquiry, Government has taken the decision to allow trading on the ZSE to resume on 3 August 2020,” said Finance and Economic Development Minister, Professor Mthuli Ncube.
Ncube said an investigation by the Financial Intelligence Unit revealed a link between the movement in prices of three dual-listed stocks and the parallel market rate of the Zimbabwe dollar; namely Old Mutual (ZSE:OMU), Pretoria Portland Cement (ZSE:PPC) and SeedCo International (ZSE:SCIL). Saying investors used these stock prices as a proxy exchange rate implied by its prices on foreign bourses such as the London Stock Exchange.
Trading on the Zimbabwe Stock Exchange would resume on Monday Aug. 3, but the three stocks would remain suspended “while further consultations continue on the best way forward regarding their re-listing under suitable rules,” Ncube said.
