Zim ready for SMEs stock exchange
Friday, 30 December 2011 00:00
Conditions in Zimbabwe are now ripe for setting up a stock exchange for Small and Medium Enterprises (SMEs) since they are major players in economic development, a Cabinet minister has said. Calls to set up an SMEs stock exchange have been growing since the adoption of multiple foreign currencies and formation of the inclusive Government in 2009. Before that, economists had advised against setting up of the bourse arguing that the Zimbabwe Stock Exchange was facing liquidity challenges.
Recently, economic analysts have indicated that an SMEs stock exchange would strengthen the economy as the country has few formal jobs due to lack of capital to resuscitate local industries which were crippled by sanctions that Western countries imposed.
Small and Medium Enterprises and Co-operative Development Minister Sithembiso Nyoni said SMEs make up 60 percent of the Zimbabwean population thus it was prudent to establish a stock exchange for them.
"We are ready for an SMEs stock exchange but the process is taking too long and further suppressing the growth of the sector," she said.
Minister Nyoni said the economy was growing as a result of the contribution of SMEs.
She said her ministry had entered into partnerships with some private players to fund SMEs projects and enhance skills requisite in the informal trade and manufacturing. Zimbabwe plans to set up a second bourse by 2013, mainly for SMEs.
The bourse is expected to position SMEs well on the local and international market due to regulated marketing and free publicity. - New Ziana.
Labels: SITHEMBISO NYONI, SMEs, STOCKMARKETS
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Emerging US interest in Zim opportunities– Imara
by
03/01/2010 00:00:00
ANALYSTS say there is renewed global interest in Zimbabwe with investors, particularly from the United States, beginning to look at emerging opportunities in the recovering Southern African country.
Botswana-registered Imara financial services group recently concluded its annual “show-and-tell” safari to America highlighting investment prospects on the continent and says US business executives showed great interest in Zimbabwe.
"US investors had very few questions about North Africa or South Africa. Their interest was on all the markets in between, with Zimbabwe and Nigeria coming in for closest scrutiny.
“Zimbabwe is interesting to Americans because the economy was assumed to have been ruined beyond repair by the country's lost decade.
“Yet dollarisation and the first stirrings of reform immediately triggered a big upsurge in economic activity – indicating that huge potential can be unlocked, even by quite limited initiatives,” Imara group CEO Mark Tunmer said.
The Imara group has offices across sub-Saharan Africa as well as in Dubai and the United Kingdom.
Meanwhile equity investors have welcomed the recent review of the cost of trading on the Zimbabwe Stock Exchange (ZSE) which, at 7.5 percent was considered too high relative to the rest of the region.
The Ministry of Finance reduced the fees for both buying and selling of shares to just over 3 percent and analysts say this will significantly boost activity on the bourse in the New Year.
“(This renewed) interest should result in an increase in market turnover with consequent (benefits) for all stakeholders including the Government.
“Hitherto, the equities market had been left illiquid as it had become too expensive to (trade),” an investment advisor said.
Labels: STOCKMARKETS
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‘SADC automated stock exchange will boost securities market’
Written by Nchima Nchito Jr
Tuesday, May 26, 2009 1:59:11 PM
LUSAKA Stock Exchange (LuSE) general manager Beatrice Nkanza has stated that the development of the automated stock exchange hub in SADC will boost the performance of the securities market.
Responding to a press query, Nkanza stated that with the completion of the technical architecture for the hub, plans had reached an advanced stage for the establishment of an automated stock exchange centre in the Southern Africa Development Community (SADC).
“The SADC hub has reached an advanced stage in that the technical architecture has been completed. This means the mode of access; reciprocity between the parties has also been discussed and should be refined as the project nears completion,” she stated.
Nkanza further stated that the co-ordination of the transactions would be included in the trading rules.
“Enforcement, in case of disputes will also be determined in the jurisdiction where the trades take place, as prescribed in the rules,” she stated. “What it means is that the new system is an ‘enabler’ as opposed to being a market per se, meaning that it will enable our local brokers to buy or sell securities in JSE [Johannesburg Stock Exchange] or Mauritius or any member who will be hooked on to this system and vice versa.”
Nkanza stated that the regional stock exchange hub would help in the integration of the various exchanges in the SADC region.
“The benefits of the hub will be the ability of local brokers to access securities in other markets which will be using the system,” she stated.
“The effect is an increase in size of the market out reach, increased liquidity and variety of products and investors. Cross listings will also become a reality.”
Nkanza however pointed out that funding was still being sought for the SADC hub project.
“The committee is looking at various sources. The launch dates keep moving as a result of numerous extenuating circumstances. Currently I believe the launch date is end of year 2009, all things being equal.” said Nkanza.
SADC member states are in the process of developing an automated stock exchange hub which will enable people and investors to buy shares from any listed companies within the region.
Labels: BEATRICE NKANZA, SADC, STOCKMARKETS
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ZSE shares resurge on negative inflation
NEGATIVE June inflation figures fueled the Zimbabwe Stock Exchange shares resurgence last week, halting losses started June-end. At close Thursday, the mainstream industrial index rose 11,15 percent or 5 721 438 807 008.20 points to 57 112 109 101 473.70 points after reports annual inflation had hit 2,2 million percent for June. Minings leapt 33 percent to fresh record highs at 79 721 657 780 142.20 points led by gains in Halogen and Rio Tinto.
Stocks gained under a bout of mounting inflationary pressures, as Central Statistical Office acting director general, Moffat Nyoni tried to play down the unprecedented growth in inflation.
Nyoni said the figures were not as accurate because the Office was functioning on limited data.
The CSO boss has previously denied allegations of massaging inflation statistics.
"The information was based on fewer observations than we would be confident with due to scarcities," said Nyoni.
Official inflation figures were last published in February at 165 000 percent.
No data has been released from ever since for reasons like the unavailability of products used in the inflation basket on the formal market.
Most products have never been sufficiently available on the formal market for a very long time now. Instead, it has been the parallel market that’s been more active, though at unrealistically wild prices.
Last week, Government also announced the ‘Bacossi To The People’ programme, a populist concept meant to provide basic foodstuffs to the poor at prices next to nothing.
But it was the rising inflation figures that drove the equities comeback.
Investors are also sceptical as to the source of funding for the Bacossi project, whose products the central bank said would be manufactured here.Investors are concerned about the prospect of higher money supply growth, as the RBZ prints more cash to fund Bacossi.
Rising costs are also forcing retailers to increase prices a number of times a day, which has fed into the inflation spiral.
For the review week, average ZSE daily turnover reached $314 015 trillion, at close Thursday, while total market capitalisation closed the day at $801 218 trillion.
The industrial index posted a growth of 57 percent in the four days to Thursday and are up nearly 3 million percent on a year-to-date basis. Minings gained 59 percent in the review week, and have leapt 3,3 million percent since January.
Industrials opened up 23 percent on Monday, adding 16 percent Tuesday before easing 1,3 percent at midweek
Minings also rose, gaining 19 percent on Monday. The index surged 20 percent on Tuesday but declined 0,73 percent Wednesday.
Of the index shares Thursday, 46 counters gained, 8 fell and 23 traded unchanged.
In Friday trading, the market rose broadly with a few losses reported in second liner shares.
Of the ZS shares Friday, tobacco processor, TSL led gainers rising 208 percent followed by Interfresh that gained 150 percent.
Truworths, the giant clothing retailer rose 100 percent, Cottco up 82 percent and TA 80 percent.
Pioneer led decliners falling 33 percent followed by Murray and Roberts down 23 percent and ABCH, which lost 6 percent. Cafca, the electric cable maker dropped 2 percent.
The outlook for the stock market remains largely bullish helped by a weaker rate of exchange and negative inflation forecasts.
Labels: INFLATION, STOCKMARKETS, ZIMBABWE
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