Sharp gains for Old Mutual ETF

0
386

. ETF units go up to 131m

. Value increased to $230m

Harare- Old Mutual Zimbabwe Stock Exchange Top 10 Index Exchange Traded Fund (ETF) units surged to 131m from the initial 80m and now holds a value of $230m in a space of two months.

The Statutory Instrument 240 of 2019, launched on November 15, 2015, encompassing the dealings in several classes of securities, among them; Exchange Traded Funds (ETFs) which have been traded on the ZSE for the past 6 years in line with global trends, widening a basket of instruments from which investors can choose from.

An ETF contains an assortment of stocks; a basket tracking an index. These could be indexes made up of related stocks such as mining, agriculture, technology among others.

Also, in the Declaration of Classes of Securities are other classes: Real Estate Investment Trust, Commodity Funds, Private Equity Fund, Venture Capital Fund, and Warehouse Receipts. These can now be traded on the local bourse effectively

ZSE CEO, Justin Bgoni who made the announcement on his Twitter handle said; “More added units on the Old Mutual ETF. The number of units gone up to 131m (from initial 80m). All this in 2 months. This gives us the heart to launch new products given this level of support.”

Bgoni promised a threefold mandate to promote investments in the capital markets through regulatory processes and supporting activities, improving relationships with stakeholders and growing the exchange in terms of new products, listings, investors, and expanding ZSE’s reach and influence and this initiative was welcomed with overwhelming support thus leading to the growth.

In June 2019, the ZSE launched Direct Market Access (DMA) to enable Fund Managers and Institutional Investors to enter their orders directly into the Automated Trading System (ATS) through a Client Binding Terminal without manual intervention by the broker. With this initiative, a buyer can place their own orders to the buy and sell columns instantly, and advertise the quantity and price of a stock at which they are willing to trade.

Equity Axis News

LEAVE A REPLY

Please enter your comment!
Please enter your name here