Zimbabwe Stock Exchange (ZSE) is the Zimbabwe’s official stock exchange . There are two market indices : Zimbabwe Industrial Index and Zimbabwe Mining Index . There are more than 65 listed companies in the stock exchange. It is headquartered in Harare. It is one of the major active stock exchanges in Africa. All the mining companies come under the mining index and rest all the companies come under the industrial index. The Zimbabwe Industrial Index is a stock index that derives values of industrial stocks on the stock exchange .
As Zimbabwe economy is struggling so its industrial manufacturing sector is also facing severe challenges to find capital in order to meet the requirements . There is a urgent need to make reforms and policies to properly channel the capitals to boost the manufacturing sector. Mining is also a significant sector in the economy.
History of Zimbabwe Stock Exchange:
The First stock exchange in Zimbabwe started in Bulawayo in 1896 and continued its operation for 6 years. During this period of time, two new stock exchanges were formed. One formed in Gwelo (Gweru) and a second in Umtali (Mutare). In 1896, the Mutare Exchange was formed and expanded on the success of local mining, but the authorities of this Exchange soon realized that there was a lack of extensive deposits in the area.
So the activity of this Exchange deteriorated and was closed down in 1924. After the end of World War II, Alfred Mulock Bentley established a new exchange in Bulawayo that commenced trading in January 1946. Then in December 1951, a second floor was launched in Salisbury (Harare) and trading was done by telephone between the two centers.
In 1974, January the Zimbabwe Stock Exchange Act was passed and started its operation as per the act. With the passing of the Act in 1974, The Zimbabwe Stock Exchange was formed. The trading in foreign investment started since 1993. In 2004 , the Securities Act was passed for the securities investment purpose. The securities Commission of Zimbabwe is the capital market regulator and is operational since 2008.
Functions of Zimbabwe Stock Exchange:
It is one of the leading equity exchanges in Africa, which provides services to raise capital and trading of shares. Its primary function is to provide a way to raise capital for national and international companies. The capital is raised by equities, depository receipts and debentures. The stock market helps the companies in raising the funds at a low cost to finance their business. This also serve as a place for regularized market place for the purpose of buying and selling of shares and eventually guarantees the market integrity. At present, ZSE is the second performer in the world’s rising capital markets in excess of 75 enrolled companies.
Trading Information in Zimbabwe Stock Exchange
• Trading Days : Monday to Friday
• Trading Hours: 9:00 to 12:00
• Transaction cost: Z$20 per transaction
• Brokerage Fee: 2% for transactions less than Z$50,000 1% for transactions over Z$ 100,000
• Trading System : Call over System
• Base Value : 100
Stock Exchange Modernisation
1. New companies listing rules are prepared to review the company’s performance.
2. A central Scrip depository is being planned.
3. New Securities and Exchange law is prepared and implemented.
Company wishing to be listed in the stock exchange need to conform to certain listing rules and regulations by the exchange. These rules focus on corporate governance, transparency to shareholders, financial reports and other such requirements . The companies must follow the companies Act as well as provide necessary financial reports to the shareholders showing their financial performance, investments and all such information.
Zimbabwe Stock Exchange
No 101 Union Ave
Last Updated on : 10th Oct. 2013