We all saw it coming but the big question was when will activity return to the local bourse? With trade having resumed on Thursday after the intervention on the new minister of finance and having agreed to the following with the ZSE Committee:
(1) TARIFFS
Purchases: Brokerage 2% (Committee wanted 1% but the Minister wanted 2% to boost VAT)
: Stamp Duty 0.5%
: VAT 15% of brokerage
Analysts say that to boost tax revenue, it would have been more efficient to raise the stamp duty to over 0.65% and reduce the brokerage to 1%.
Sales : Brokerage 2%
: VAT 15% of brokerage
(2) FUNGIBILITY
Fungibility restored for all dual listed companies. The RBZ will be advised of the change.
(3) ASSET MANAGEMENT COMPANIES
ZSE Committee suggested that asset managers be brought under SEC so as to share burden with them in funding SEC and in line with international practice. The RBZ will be advised of the change.
. The question now is will the shares find buyers’ considering the market seems all but a seller’s market with only Apex trading on the opening day at US1c.The other question that is still to be answered could the valuation of some counters on the bourse while the other would be also the issue of liquidity to support trade.
While these may sound to some as petty they remain concerns of some investors because some investors had traded their forex for local currency to buy stock ,let’s say US$2000 but when trade resumed the value of the stock is now at less than US$300 that’s a loss of US§1700 with no trade taking place at all.
For this and more visit our website
No comments:
Post a Comment