Omega Ukama 
THE Zimbabwe Stock Exchange (ZSE) is engaging Old Mutual and PPC with a view to have their listings moved to the Victoria Falls Stock Exchange (VFEX).
Fungibility of the two counters on the ZSE was suspended in July 2019 by the government, which claimed speculation involving the counters was driving up inflation. This was followed by an outright ban on trade of the two counters which remains in place up to March, 2022.
ZSE chief executive, Justin Bgoni
ZSE chief executive, Justin Bgoni, said the exchange’s engagements with SeedCo International, which was also suspended on the ZSE, were “successful” and led to the counter’s migration to the VFEX at the US$-denominated market’s launch last October.
“… continuous engagement to have them (Old Mutual and PPC) transfer their listing to VFEX is in progress,” Bgoni said in the exchange’s 2020 annual report, which was published this week.
On its part, Old Mutual says the issue is complex.
“We are treating it with all necessary urgency and sensitivity. Old Mutual, together with Old Mutual Zimbabwe, continue to actively and rigorously engage the relevant authorities to achieve a resolution that is in the best interests of all our stakeholders,” the financial services group said in its 2020 annual report, adding that its board has established a committee to manage and provide input on the matter.
PPC, on the other hand has said it will wait for finalisation of the modalities on the resumption of trading.
Meanwhile, the Insurance and Pensions Commission (Ipec) says Securities and Exchange Commission of Zimbabwe (SECZ) guidelines on the valuation of the suspended counters have eliminated inconsistencies that had emerged among pension funds.
Earlier this year, the regulator raised a red flag over inconsistencies in valuations, pointing out that pension funds’ aggregate asset base declined by 24 percent between September and December 2020, mainly due to undervaluation of holdings in the suspended counters, “as most reporting entities were using prices as at suspension date”.
Still, the Zimbabwe Insurance and Pension Apex Council (Zipac) says the continued suspension of trading in Old Mutual and PPC shares is hurting its members, which hold significant investments in the counters.
