INACTIVITY on the Victoria Falls Stock Exchange (VFEX) is weighing on SeedCo International’s (SeedCo) stock, which is now trading at a 15 percent discount on the market compared to the Botswana Stock Exchange (BSE).
Turnover on the budding exchange, which was launched last October and has just one listing, has only amounted to about US$9 000 this year.
SeedCo closed trading on Monday at US$0,21 on the VFEX and 2,70 pula (US$0,25) on the BSE.
“The disparity in prices across the two markets goes down to liquidity. As a budding market, the VFEX is not yet as liquid as established exchanges such as the Zimbabwe Stock Exchange (ZSE) or the BSE. As such price movements are much slower,” equities analyst Enock Rukwara told The Financial Gazette thi
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