ZSE announces further measures to cushion shareholders amidst COVID-19 crisis

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  • With immediate effect, trading of securities to be done cautiously
  • Issuers required to publish Special Trading Updates post lockdown

Harare – The Zimbabwe Stock Exchange (ZSE) has formulated measures meant to protect the interests of investors and stakeholders in light of the volatile and uncertain period as a result of the COVID-19 pandemic.

In a public notice, ZSE said due to the effects of the lockdown on issuers, trading in securities of all issuers listed on the ZSE shall immediately be done under caution until the expiry of the statutory lockdown period which expires on 19 April 2020.

ZSE added, “Consequently, there shall be no need for issuers to issue individual cautionary statements in respect of the circumstances affecting their businesses arising from the effects of the lockdown as this directive is sufficient in this regard.”

Also, the local bourse requires all issuers to publish Special Trading Updates for the benefit of the Investors and The Market at large on or before 15 May 2020.

The company said The Special Trading Updates shall in addition to the previously given guidelines on preparation of Trading Updates include:

  1. Update on the effects of Covid-19 Pandemic on the business of the Issuer.
  2. Statement on the Business Continuity Plan adopted by the Issuer in light of the Covid-19 Pandemic and the Lockdown Order
  3. Statement on the solvency position of the Issuer in light of the effects of Covid-19 and the lockdown order on its business

These measures come after the ZSE issued a blanket dispensation to all issuers whose half-year and full-year financial statements were due for publication by 31 March 2020 to be published on or before 30 April 2020 due to unsettling effects of COVID-19.

ZSE highlighted that, “Following the issuance of the lockdown Order some listed entities have either scaled down or completely halted their operations and the future remains uncertain. In the unfortunate event that the lockdown is extended, it is likely to put operational and financial pressure on many listed companies. We hope that we will not reach the worst of the pandemic.”

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