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ZSE hikes transaction thresholds by 900pc

The ZSE said the latest changes were in line with the trading environment (File Picture)

The Zimbabwe Stock Exchange (ZSE) has increased transaction thresholds on the ZSE Direct by 900 percent, due to the impact of exchange rate-driven inflation dynamics.

ZSE Direct is an online platform that allows investors to buy and sell shares on the stock exchange and is accessible to all investors, regardless of their experience or financial knowledge.

According to chief executive officer Justin Bgoni, the changes are in line with the trading environment, which has recently been characterised by inflationary pressures and exchange rate volatility.

“In trying to keep up with the changing economic environment, the Zimbabwe Stock Exchange Limited (ZSE) hereby notifies the investing public of the new minimum transaction thresholds on ZSE Direct with effect from Monday 26 June 2023,” said Mr Bgoni.

According to the ZSE, the minimum deposit has been reviewed to $5 000 from $500 while the minimum withdrawal has been raised to $10 000 from $1 000.

The minimum trading amount is now pegged at $5 000 from $500 while the custodial fee is now $2 000 from the previous $200.

In September 2020, the bourse introduced the ZSE Direct to increase retail investors’ participation on the stock exchange and demystify the misconception that capital markets are elitist only. 

For years, the participation of retail investors in the capital markets has been limited against institutional investors.

Since its launch, it has managed to make investments much easier for the retail market, while also boosting financial literacy and inclusion.  Apart from the ZSE Direct, the bourse introduced other initiatives like the ZSE Training Institute in February of the following year, which provided customised capital markets training, a move that was meant to generate interest from retail investors.

Among the advantages of ZSE Direct are real-time market data, allowing investors to make informed decisions about when to buy and sell shares. This is in addition to low charges To use ZSE Direct, investors must first open an account. The account opening process is quick and easy and can be completed online. Once an account is open, investors can deposit funds and start trading shares.

Herald

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