ZSE institutes operational changes

THE Zimbabwe Stock Exchange (ZSE) yesterday instituted operational changes that would result in circuit breakers for all counters with a market price that is below the Zimbabwe dollar equivalent of US dollar 0,01 restated back to ± 100 percent from the current ±20 percent.

As of yesterday, 12 counters were set to be affected with the changes subject to weekly review.

They include Ariston Holdings Limited, Bridgefort Capital Limited, Bridgefort Capital Limited Class B, General Beltings Holdings Limited, Getbucks Microfinance Bank Limited, National Tyre Services Limited, Starafricacorporation Limited, Truworths Limited, Turnall Holdings Limited, Willdale Limited, Zeco Holdings Limited, and Zimbabwe Newspapers (1980) Limited.

Circuit breakers are measures implemented by exchanges when they consider price movements to be overly volatile.

They can take the form of a trading suspension or limiting the buying and selling of securities within a specific price range.

Circuit breakers are a fail-safe measure aimed at curbing panic selling on stock exchanges.

In a notice, ZSE Chief Executive Officer, Justin Bgoni said, “The Zimbabwe Stock Exchange (ZSE) is always looking at ways to boost liquidity, ensure price discovery and align with international best practices.

Mr Justin Bgoni

“In this regard, the ZSE is continuously reviewing its practices including the use of circuit breakers. We wish to notify stakeholders of the operational changes with effect from 29 August. The ZSE circuit breakers for all counters with a market price which is below the Zimbabwe dollar equivalent of US dollar 0,01 will be restated back to ± 100 percent from the current ±20 percent.”

In June, ZSE changed the market wide trading halt threshold from ±10 percent to ±15 percent for index movement on the ZSE All Share index.

It said it was in line with rule 4.13.1 of the ZSE Trading procedure.

The ZSE circuit breakers for individual securities remained at ± 15 percent.-chronicke