Confusion reigns over valuation of the
This comes amid a growing push in the market to use prevailing share prices for the two stocks on the
The share valuation is material to the fees earned by fund managers as well as the asset base of companies who are holding these stocks in this inflationary environment.
Pension funds and insurance companies, who fund about 70% of investment on the ZSE, are perhaps the most concerned by the development.
Information at hand shows fund managers have been strongly pushing markets regulator, the
This, however, flies in the face of the government's own attempts to paint a picture of a free market economy where even its weak local dollar is valued on an interbank auction system.
An impeccable source close to the government, SECZ and the ZSE said the government's attitude against the preferred position is currently delaying promulgation of a directive to use the JSE share prices at interbank rates for audited accounts and other future transactions until the matter is concluded.
According to the source, who is involved in the ongoing deliberations, the government appears to be losing the battle.
"This issue is more political than anything else, also especially given there was a standoff between the government and
As previously reported by this publication,
Sources even indicated
Market experts say valuation of the shares in question could prove to be a mammoth task for industry and investors stand to lose because of the exchange rate scenarios.
"The question is what your shares are worth now and we have pension funds and other corporates who need this for their 2020 year end results," the source added.
A fund manager said it has been over seven months since the shares have been suspended and valuation is critical to make the shares liquid.
The Insurance and
"Price aside, when are these counters coming back to trade? How long can the investment community sit looking at shares? You must also remember auditors are going to want a value, what are they going to use?" said a fund manager who requested anonymity
Newly appointed
"What we have agreed with SECZ is that we will use the respective prices of
"That is how we have been valuing them, so we are just applying that valuation on
"The regulator is expected to issue a directive to that effect, it should come out soon and that is the way forward on that one. That was the agreed position between industry and the regulator."
Efforts to get a comment from the SECZ were fruitless.
Copyright Zimbabwe Independent. Distributed by AllAfrica Global Media (allAfrica.com)., source