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PPC shares to remain suspended as ZSE opens

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By Alois Vinga

THE country’s largest cement producer, PPC Zimbabwe shares remained suspended when trading began on Monday on the Zimbabwe Stock Exchange (ZSE).

In a statement PPC Zimbabwe said this was in line with the directive issued by Finance Minister Mthuli Ncube into the dealings on the ZSE.

“A condition for the resumption of trading on the ZSE from August 3 2020, trading in, inter alia, the shares of PPC is to remain suspended on the ZSE platform, pending further engagement on the matter,” said the firm in a statement.

The cement manufacturer said it has since been cleared of any wrongdoing linked to illegal foreign currency dealings.

“Notwithstanding the foregoing, the ZSE and PPC have agreed to halt trading in the shares of PPC Limited pending finalisation of the modalities on the resumption of trading,” said the two entities in a joint statement.

Authorities in Harare ordered the suspension of ZSE trading on the 26th of June.

Government accused the stock market of causing perpetual currency depreciation through speculative bets.

Dual listed counters particularly Old Mutual, were accused of fuelling economic instability due to speculative behaviour not driven by any market fundamentals.

As a result, the government and the ruling ZANU PF party recommended that companies with dual listings be withdrawn from trading on the commodities market to ease market instabilities.

Trading kicked off this Monday after a month of no action.

PPC has a primary listing on the Johannesburg Stock Exchange (JSE) in South Africa and a secondary listing on Zimbabwe Stock Exchange.