Business / Companies
ZSE Automated trading fails to go live, postponed
03 Jul 2015 at 04:09hrs | Views
The inaugural Automated Trading System on the Zimbabwe Stock Exchange (ZSE) that was scheduled to go live today has failed to take off amid indications the system still has some technical challenges that are being addressed.
The latest postponement means the system will go live at a future date that is yet to be announced.
Yesterday, the ZSE sent out a notices saying, "The investing public is hereby notified that with effect from Friday 3 July 2015, the Zimbabwe Stock Exchange will launch an electronic market to replace the current manual call over which requires Stockbrokers to convene on each trading day to conduct business (buying and, or, selling of shares) on behalf of investors. The new electronic platform enables participants to conduct their business from various locations by accessing the Zimbabwe Stock Exchange through the internet. The automated trading system operates on agreed rules which are in-built in the system and therefore guarantees adherence to price and time priority principles in the interest of market fairness and transparency.
Meanwhile, the Zimbabwe Stock Exchange saw a 32 percent dip in trading in the first six months of the year, as most heavyweight stocks registered declines in volumes of trading.
Statistics from the stock market show that trades on ZSE amounted to $136,72 million between January and June from $200 million in the same period last year when more people bought and sold shares.
Trading on ZSE has since dollarisation been dominated by foreign investors due to tight liquidity in the domestic economy, as Zimbabwe uses foreign currency, exclusively.
As such, foreign investors bought $73,96 million worth of shares and sold $68,79 million on ZSE between January and June.
The latest postponement means the system will go live at a future date that is yet to be announced.
Yesterday, the ZSE sent out a notices saying, "The investing public is hereby notified that with effect from Friday 3 July 2015, the Zimbabwe Stock Exchange will launch an electronic market to replace the current manual call over which requires Stockbrokers to convene on each trading day to conduct business (buying and, or, selling of shares) on behalf of investors. The new electronic platform enables participants to conduct their business from various locations by accessing the Zimbabwe Stock Exchange through the internet. The automated trading system operates on agreed rules which are in-built in the system and therefore guarantees adherence to price and time priority principles in the interest of market fairness and transparency.
Meanwhile, the Zimbabwe Stock Exchange saw a 32 percent dip in trading in the first six months of the year, as most heavyweight stocks registered declines in volumes of trading.
Trading on ZSE has since dollarisation been dominated by foreign investors due to tight liquidity in the domestic economy, as Zimbabwe uses foreign currency, exclusively.
As such, foreign investors bought $73,96 million worth of shares and sold $68,79 million on ZSE between January and June.
Source - online
