ZSE announces changes in circuit breakers

Circuit breakers on securities with a market price below the Zimbabwe equivalent of US0,01c have been restated to +/-100 percent from a +/-20 percent, according to the Zimbabwe Stock Exchange (ZSE) chief executive officer Justine Bgoni.

A circuit breaker is used by a stock exchange to restrict trading of a particular stock or an index.

If an index falls or rises by a certain percentage, the exchange triggers trading halts or restrictions on trading. There are two types of circuits, upper circuit when the index shows a strong upward movement and the lower circuit when the index falls considerably.

By capping the maximum movement in any direction gives certainty that losses or gains are contained within a daily limit.

The affected securities are:

Ariston

Bridgefort Capital

Brigdefort Capital Class B

General Beltings

Getbucks

National Tyre Service

Starafricacorporation

Truworths

Turnall

Willdale

Zeco

Zimpapers

-ebusinessweekly