Vusumuzi Dube
Judith Phiri, Business Reporter
THE Zimbabwe Stock Exchange Limited (ZSE) has said it will with effect from Monday change the market wide trading halt threshold from plus or minus 10 percent to plus or minus 15 percent for index movement on the ZSE All Share Index.
ZSE All Share Index tracks the performance of all companies listed on the ZSE. It updates regularly to reflect current market conditions, providing a comprehensive view of the economy and the potential of listed companies.
The ZSE had previously announced changes to its trading operations on 28 April 2022, as the change is meant to help the ZSE in adapting to evolving market conditions.
In a statement on Friday, ZSE chief executive officer (CEO) Mr Justin Bgoni said the change has been necessitated to align the index halt thresholds with the individual securities movement.
“The ZSE would like to notify all stakeholders of the following operational changes effective 12 June 2023, the ZSE will change the market wide trading halt threshold from plus or minus 10 percent to plus or minus 15 percent for index movement on the ZSE All Share Index. This is in line with Rule 4.13.1 of the ZSE Trading procedures.
“The ZSE circuit breakers for individual securities will remain at plus or minus 15 percent. The above changes have been necessitated to align the index halt thresholds with the individual securities movement. The ZSE will also continue to review its operations in line with market developments.”
Last week, the ZSE had to institute trading halts for three consecutive days on the ZSE Markets after the ZSE All Share index reached the 10 percent threshold on the upside, with 30 minutes cooling off periods required before the market resumed trading.
The move came amid investors flocking to the stock market as an escape from the rapid depreciation of the Zimbabwean dollar. The ZSE All Share index surpassed the 10 percent threshold on the upside. Consequently, the ZSE exchange had to take immediate action.
Online Reporter