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Business Reporter

The Zimbabwe Stock Exchange was operating without any challenges on the first day of lock down yesterday despite some stockbrokers and fund managers having to work from home, chief executive officer Justin Bgoni told The Herald Finance & Business.

After consultation with the Ministry Of Finance and Economic Development (MoFED) and The Securities and Exchange Commission of Zimbabwe (SECZ), the Zimbabwe Stock Exchange Limited (ZSE) will continue trading during the lockdown, a statement sent out by the bourse reads.

Trading hours will, however, be shortened to close at 12pm.

“We intend to remain open throughout the period as are other exchanges are doing unless directed otherwise by Government,” said Mr Bgoni.

“In turbulent times one needs to do proper research on which sectors to invest in.

“As shown in other global crisis, the capital
markets will bounce back but it may take time,” he added.

A fund manager who  preferred anonymity said despite having to operate from home it was business as usual.

He said so far there was no significant change in the amount of funds they are handling.

“We are looking for a home for both new and old funds.

“So far it’s business as usual but going forward flows should be affected especially from tourism and construction clients.”

A stockbroker shared the same sentiments saying as expected “generally it is a quiet day”.

“So far the ATS board looks normal. Only last week did we see some heavy selling from a few institutions raising money,” said financial analyst Ranga Makwata.

With most countries having gone under lockdown and restricting travel, the tourism industry is likely to be one of the hardest hit by the Covid-19 pandemic and this will reflect on the valuations of ZSE listed stocks RTG and African Sun together with landlord Dawn Properties.

Meanwhile at least 1 330 900 shares worth approximately $5,7 million changed hands yesterday.

The bulk of the funds amounting to $3,381,250 was invested into Old Mutual despite restrictions and probe around the stock. Delta got $680 400 and Econet got $623 000.