We are discontinuing the "Old Mutual Implied Rate" (OMIR) as trading in US dollars
began on Thursday 19th February 2009 at the Zimbabwe Stock Exchange (ZSE). We will continue to provide
the daily share price alert while updating ZimbabweanEquities.com into a new informative information
website to help you make educated investment decisions. Thank you for your support.
Zimbabwe 2009 Monetary Policy Statement
February 2, 2009
- Local currency revalued with immediate effect, through the removal of 12 zeroes, accompanied by the introduction of the following new currency denominations: $500, $100, $50, $20, $10, $5 and $1;
- Purchase of goods in foreign exchange vouchers introduced;
- All corporates shall with immediate effect be allowed to pay salaries in foreign currency for their employees without prior Exchange Control approval;
- FCA upfront sales to the Reserve Bank by exporters has been reduced from the current 15% of exports to 7,5%, with effect from 1 February, 2009;
- All gold producers shall retain 92,5% of their sales in foreign exchange;
- ZSE trading: A financial sector stability levy of 1.5% shall be payable to the Reserve Bank in foreign exchange; and each seller of shares in foreign exchange shall liquidate 3.5% of proceeds to the Reserve Bank at the going interbank exchange rate.
Download full Monetary Policy Statement >>
Extract from the Zimbabwe 2009 National Budget
Stock Exchange Trading
January 29 2009
- The Zimbabwe Stock Exchange remains a critical pivot for socioeconomic
development through its intermediary role between
surplus economic agents and those intending to raise capital.
- Left to their whims, however, Stock Exchanges can spin out of
control, particularly in cases where there are no strict oversight
rules of play.
- In order to ensure that the Zimbabwe Stock Exchange fully plays
its developmental role, the Ministry of Finance, through the Securities
Commission, is putting in place a rigorous code of ethics, as
well as stringent licencing and risk management systems for stockbrokers.
- Consultations are on-going over measures to ensure that the
Zimbabwe Stock Exchange also serves as an effective vehicle
for foreign exchange generation.
- In this regard, Mr Speaker Sir, stock market trading in both local
and foreign currency will be allowed.
- The necessary considerations underway to facilitate trade on
the local stock market in foreign currency include:
- Level of domestic foreign currency liquidity to allow for meaningful
stock market trading.
- Level of foreign investor participation, vis-à-vis promotion of
local ownership and participation in local companies. At
present, a single foreign investor can own up to 10% of a
listed company and up to a maximum of 40% for all
foreigners combined.
- The Ministry of Finance will, through the Securities
Commission, be announcing the detailed implementation
modalities in due course.
Read the full report, Zimbabwe National Budget 2009, in iPaper here >>
Zimbabwe Stock Exchange Closed Indefinitely, CEO Says
By Brian Latham and Janice Kew
Jan. 27 (Bloomberg) -- Zimbabwe’s stock exchange, shut two months after the central bank accused traders of using fraudulent checks, will remain closed until the government agrees on a plan to denominate shares in dollars, the bourse’s chief said.
“We’ve reached agreement in principle to dollarize trading, but there are still some issues,” Emmanuel Munyukwi, chief executive officer of the Zimbabwe Stock Exchange, said in a telephone interview from the capital Harare yesterday. “At this point it’s hard to say how long it will take or when trading will resume.”
Read more >>
Zimbabwe’s Stock Exchange Fails to Resume Trading
By Brian Latham
Jan. 7 (Bloomberg) -- The stock exchange of Zimbabwe, which has the world’s highest inflation rate and has suffered a decade of recession, hasn’t reopened since the Christmas holidays after new regulations caused trade to grind to a halt.
“We don’t know exactly when trading will resume because we are still investigating various issues,” Emmanuel Munyukwi, chief executive officer of the Zimbabwe Stock Exchange, said by phone today from Harare, the capital. Munyukwi couldn’t provide further details because he’s still on vacation, he said.
Read more >>
Important Notice
From 21 November 2008 Old Mutual plc has not traded on the Zimbabwe Stock Exchange
(ZSE). Old Mutual plc last traded on the ZSE on 20 November 2008 at ZWD10 quadrillion
per share. As at today, 25 November 2008, Old Mutual plc is offered at
ZWD500 trillion per share but has not traded. Should the Old Mutual plc share trade at the
current bid price, the OMIR statistics would be as follows:-
- Current OMIR at a price of 500 trillion = 649,374,262,960,211
- Previous OMIR at the previous offer price of 500 trillion = 702,088,432,250,572
The haitus between the ZSE and the broking community, the collapse of the banking sector,
the settlement infrastructure within it and illiquidity of the Old Mutual plc share on the ZSE
probably renders the OMIR meaningless for the basis of business decision making. However we
will continue to monitor the situation and should the situation return to normal we will resume
our free daily email service.
Any comments please email omir@ZimbabweanEquities.com
ZSE to switch to a single callover from 19 November 2008
The ZSE is to switch to a single callover from 19 November 2008 to counter allegations of
market manipulation by some brokers, ZSE chief executive Emmanuel Munyukwi said.
He said it had come to the attention of the exchange that some brokers had been buying
shares at first Callover and offloading them at a much higher price in the Final Callover.
"We took the decision at the ZSE Committee meeting yesterday, before we learnt of the
decision by the RBZ."
Munyukwi said he had also been informed that a large number of multi-quad,quin and sextillion
cheques had bounced. He added the ZSE would continue to monitor the situation and switch back to
two callovers should the situation normalise.