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Business Editor
GOVERNMENT has concluded investigations on activities on the Zimbabwe Stock Exchange (ZSE) with trading on the bourse set to resume next week Monday.

However, three internationally listed stocks, namely Old Mutual Plc, Seedco International and PPC, remain suspended from trading on the ZSE for the time being whilst further consultations continue on the best way forward regarding their relisting under suitable rules.

Finance and Economic Development Minister, Professor Mthuli Ncube, announced the development in a statement yesterday and said the public will be periodically updated on progress.

Government took a bold decision to suspend trading on the ZSE a few weeks ago as well as banning of bulk mobile money agent transactions to pave way for a thorough inquiry into the goings on the securities exchange front and abuse of mobile money platforms.

This followed unprecedented speculative and destabilising behavior on the ZSE, which was in large part contributing to broader macro-economic instability.

The Financial Intelligence Unit of the Apex Bank was then tasked to look into the matter.

“I am pleased to advise that the investigation is now complete and a detailed review report has been submitted to the Government.

“Given the findings of the enquiry, Government has taken the decision to allow trading on the ZSE to resume on 3 August 2020,” said Prof Ncube.

“In the meantime, further investigations into market conduct behaviour by some identified market participants (brokers, asset managers and share market investors) are being conducted by relevant regulatory and security agencies, and the findings, therefore, will result in suitable action being taken.”

According to Prof Ncube, the Financial Intelligence Unit established that some market players were acting out of line with the norm of the rules on the ZSE and best trading practice, in the nature of their activities.

Whilst there was no observed evidence of the direct involvement of the listed entities themselves, the minister said significant evidence of a strong link between the price behaviour and the transaction patterns on internationally listed shares like Old Mutual, Seedco and PPC, and the behavior of the parallel market exchange rate was also established, with various degrees of causality.

“In particular, the Old Mutual Implied Rate (OMIR) was observed to be the key driver of parallel market pricing behaviour, with many market players in the real economy using this highly visible rate as the benchmark for forward pricing and costing of goods and services, as well as determination of foreign exchange rate in the market,” he said.

The minister said the report also contains several recommendations and areas for further inquiry, which will be taken up by relevant security and criminal investigative arms of Government.

Prof Ncube said Government remains committed to restoration of order and removal of abberations on the financial markets in order to maintain the credibility and integrity of Zimbabwe’s financial markets so that they continue to play a critical role of attracting global capital into the country.