HARARE - The Securities and Exchange Commission of Zimbabwe (SecZim) says there are unclaimed shares in listed companies worth $22,8 million.
This follows a directive by the capital markets regulator in 2012 to all stockbroking firms instructing them to register all securities into the names of respective beneficial owners.
However, some of the shares were not claimed and SecZim said they would be held under licensed custodians pending collection by rightful owners. The custodial service providers are Old Mutual and ZB.
SecZim’s chief executive Tafadzwa Chinamo said Camarton Consultants, as the fund administrator of the Investor Protection Fund, has been given the additional mandate to provide full administration and secretarial services to the unclaimed shares portfolio.
Meanwhile, the local bourse’s market capitalisation slumped by $642,8 million to $4,56 billion in the first quarter of 2014 as stock prices plummeted, a latest market report reveals.
In the report, financial group AfraAsia Holdings Zimbabwe Limited (AfrAsia) said the slackening economic growth and disappointing 2013 companies’ performance earnings contributed to weakening stock prices across the board.
“The equities market has also been affected by delistings and suspensions which peaked in 2013 as companies faced mounting viability challenges,” said the report.
The bourse’s mainstream index closed the quarter 12,76 percent lower at 176,32 points whilst the resource index dropped 35,55 percent to 29,51 points — the lowest since 2009.
AfrAsia noted that the stock market took a knock soon after the July 31, 2013 and since then has struggled to find traction.
Following the polls, the bourse lost nearly $1 billion in a week with market capitalisation plunging 15,68 percent to $5 billion from $5,96 billion.
“Overall turnover for the quarter was down eight percent to $118,7 million from the previous quarter turnover of $128,8 million as foreign investors buying declined by four percent to $79,4 million from $82,7 million,” AfrAsia said.
Net buying — foreign buys less foreign sales, increased to $32 million during the quarter from $14,8 million as at December 31, 2014.
Foreign buying as a ratio of total turnover also went up to 67 percent in the first quarter of this year from 64 percent in the last quarter of 2013.
“The continued support by foreign investors on the ZSE is coming from the continued use of the multi-currency regime and the potential upside on selected stocks,” AfrAsia said, adding that foreigners targeted bellwether stocks like Delta, Econet and Innscor with relatively strong earnings, cash flows and balance sheets.
Small and medium capitalised stocks dominated the movers during the period under review.
Market watchers say the ZSE is sliding, driving equity prices lower across the board amid a punishing economic slowdown characterised by a biting liquidity crunch.
They warn that the stock market will continue falling, wiping out millions off the value of Zimbabwean companies.