THE Zimbabwe Stock Exchange (ZSE) will today start trading on a single call-over session despite efforts by some stockbrokers to challenge the decision.
ZSE chief executive, Emmanuel Munyukwi, had written to brokers and fund managers on January 16 inviting their objections to the decision to scrap the afternoon trading sessions.
Businessdigest understands that although five broking firms submitted their objections the decision to use one call over session will go ahead today.
Zimbabwe Association of Investment Managers chairman, Tafadzwa Chinamo, said the bourse will implement its decision despite objections made by some stock broking firms.
“The decision to have the single call over still stands,” said Chinamo.
“According to my diary we are meeting the ZSE boss on the Monday (February 4) and this will be one of the monthly routine meetings we have with him,” he added.
Some brokers told businessdigest this week that they were unhappy with the decision to use one trading session.
“The new decision to go ahead with the implementation of the proposal undermines voices of dissent,” said one stockbroker.
“I’m informed that five stock broking firms wrote submission to Munyukwi challenging this decision.”
“The single call over session will result in small stocks receiving less attention once blue-chip counters have traded in the four to five hours trading sessions,” added the stockbroker.
Munyukwi could not be reached for a comment as he was said to be preparing for a trip outside the country.
Meanwhile analysts have expressed concerns over the continued technical hitches being caused
by the Real Time Gross Settlement (RTGS) system.
The failure of the system has taken away the glitter from the stock market, analysts say.
“Such a situation will lead some people to invest in high yielding unofficial investment opportunities,” said a fund manager with an asset management firm.
Other analysts said the failure of the electronic transfer system will further mount pressure on banks which are currently facing liquidity problems.
“There are some brokers who have been asked by their clients to pay an interest after banks failed to process a transaction.”