Investors are reportedly shocked and stressed by the government’s decision to suspend trading on the ZSE following Friday’s announcement by the Information Ministry’s secretary Nick Mangwana that the government was ordering the stock exchange to suspend trading until further notice, New24 reports.
Imara Edwards Securities, MD Thedias Kasaira while speaking to the publication said they were having a hard time explaining to investors what happened:
Clients are asking and we don’t know what to tell them. They want an explanation, but we haven’t been able to give one as we also don’t know the reason.
Head of equities at Harare-based IH Securities, Lloyd Mlotshwa tried to explain why people were opting to invest in the stock market before it was suspended:
People are looking at a hedge against inflation; that’s why they are switching from Zimbabwe dollars to equities. The stock exchange serves as a proxy to parallel market rates
ZSE on Sunday announced trading is suspended until further notice.
More: News24