2019 capital market highlights

Source: 2019 capital market highlights | The Herald 30 DEC, 2019

2019 was an unpredictable year for the Zimbabwean capital market given the prevailing hyper-inflationary environment. Despite the economic uncertainties, several activities and events took place within the market.

On 1st June 2019, the Zimbabwe Stock Exchange (ZSE) resuscitated the Odd Lot Board for effective implementation of Direct Market Access (DMA).  DMA enables fund managers and institutional investors to enter their orders directly into the Automated Trading System (ATS) without manual intervention by the broker.

In a bid to reform and strengthen Zimbabwe’s capital market the Securities and Exchange Commission of Zimbabwe (SECZ) joined the UK-funded Financial Sector Deepening Africa’s (FSD Africa) flagship African Regulator Support Programme in June 2019. This is an initiative to identify challenges and strengthen capital markets by improving regulation and compliance with international standards.

On 16 September 2019, ZSE and Botswana Stock Exchange (BSE) signed a Memorandum Of Understanding (MOU) for cooperation that will help foster the prosperity of financial markets and promote border investments between the two countries.

In fulfilment of its objective of promoting market integrity, orderliness and preventing financial crime, SECZ officially launched an Anti-Money Laundering and Combating Financial Terrorism (AML/CFT) handbook on 25th September 2019. The handbook provides guidance and ensures compliance with legislation by Securities Market Intermediaries (SMIs) licensed under the Securities and Exchange Act Chapter [24:25] and any other laws administered by SECZ.

Morgan and Co officially launched a research app on 10 October 2019. The app seeks to simplify the investment space by offering in-depth research content in Zimbabwe. The app  has a unique investor relations function that provides access to management of all listed counters on the ZSE.

As part of its financial inclusion efforts, SECZ introduced new investment products through the gazetting of the Collective Investment Schemes (Internal Schemes) (Amendment) Regulations, Statutory Instrument 240 of 2019 on 15 November 2019.

Wishing you all a happy new year and gratifying investment environment throughout 2020!

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