Zimbabwe Stock Exchange a platform for investment

1
Zimbabwe Stock Exchange a platform for
investment
Zimbabwe Diaspora Investment Conference

• Presentation by E.H Munyukwi CEO
• Zimbabwe Stock Exchange

London
26 September 2009
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Contents

• History of the Zimbabwe Stock Exchange
• Structure Role of Zim. Stock Exchange
• Regulatory Environment
• Market Participants
• Macro economic indicators listed Companies
• ZSE performance since dollarisation
• General outlook

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History of the Zimbabwe Stock Exchange

• 1896 - First stock exchange, Bulawayo
• 1951 - Second stock exchange, Harare
• 1974 - Stock Exchange Act
• 1996 - Revised Stock Exchange Act
• 2004 - Securities Act

4
Structure of the Zimbabwe Stock Exchange

• Registered Securities Exchange
• Self Regulatory Organization
• Members Rules
• Demutualization

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Role of Zimbabwe Stock Exchange

• Primary Function
• Raise and efficiently allocate capital to the
  countrys productive sector
• Secondary Function
• Provide an efficient and transparent price
  discovery mechanism

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Regulatory Environment

• Securities Act
• Listing Requirements
• International Accounting Standards
• ZSE Monitoring Panel

7
Market Participants

• Institutional investors
• Mutual funds
• Fund managers
• Individual investors
• Foreign investors
• Issuers
• Intermediaries
• Stockbrokers
• Sponsors

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Trading on the Zimbabwe Stock Exchange
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Key Economic Indicators

• Population (millions) 13.5
• GDP (USD Billions) 2007 3.2
• Sectorial volume added ( GDP) 2005
• Agriculture 19.1
• Industry 23.9
• Services 57.0

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Listed Companies By Sector
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Market Capitalization 2009
USD
12
Turnover 2009
USD
13
Volume 2009
14
Monthly Closing Indices
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Top Movers
USD Cents
16
Top Shakers
USD Cents
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Economic Recovery

• Sterp Budget USD
• Agriculture 980
• Specially targeted vulnerable
• groups 100
• Education 440
• Health 300
• Water sanitation 740
• Local authorities 255
• Support Industry 1150
• Electricity 370 to 2 000

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Highlights of Recent Corporate Results

• Strong monthly volume growth
• Rising capacity utilization
• Move into profitability
• Rising bank deposits

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Opportunities

• Company Recapitalization
• Working Capital
• Retooling

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Opportunities Continue

• Market Movers
• Mining
• Mineral Reserves
• Gold 13 million tonnes
• Platinum 2 880 Million tonnes
• Chromites 930 Million tonnes
• Nickel 761 Thousand tonnes
• Coal 1.3 billion tonnes
• Diamonds 16.5 million tonnes
• Coalbed Methane 39 billion cubic metres

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Market Movers Continue

• Agriculture
• Manufacturing
• Tourism
• Information Technology
• Discounted prices
• Emerging market rating
• No currency risk

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Threats

• Political macro economic instability
• Exchange Control
• Investment Legislation
• Investment protection agreements

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Questions

• The End