ZSE Optimistic On Urgent Old Mutual, PPC Listing Resolution

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By Alois Vinga

ZIMBABWE Stock Exchange (ZSE) has expressed optimism over the envisaged relisting of Old Mutual (OM) and PPC following the firms’ suspension over a slew of alleged misdemeanours by the government last year.

Financial services giant OM and cement producer PPC were suspended in June last year, facing several allegations around the status of their fungible stocks, which were trading in Zimbabwe and South Africa.

They were alongside agro-technology concern SeedCo, which was trading its stock on the Botswana Stock Exchange and given the option to list on Victoria Falls Stock Exchange, which began trading in October.

Market watchers have since criticised the continued suspension of the two companies saying it will be difficult to evaluate the worth of shares held by investors.

Pension funds have also been unable to unlock their income and are finding it difficult to present the financial performance for the past year in the absence of full details.

However, ZSE chief executive officer, Justin Bgoni told participants at the 2021 edition of the Zimbabwe Financial Markets Indaba that the matter is likely to be resolved soon.

“We are working very hard to get the matter resolved expeditiously. We apologise sincerely to the investing public but be rest assured that the matter is being tackled at the highest level through engagement of the government.

“We hope the issue will be resolved soon as it is equally affecting us,” said Bgoni.

Pressure on finalisation of the matter continues to mount on the government as several fund managers bemoan over seven months since the shares have been suspended without any tangible steps to make the shares liquid.

The Insurance and Pensions Commission recently added its voice on the matter saying the suspension of Old Mutual and PPC shares affected asset value.