Zimbabwe Stock Exchange (ZSE)

Stock exchange is an exchange where stockbrokers and traders can buy and sell securities, such as
shares of stock issued by listed companies, pooled investment products, bonds, and other financial
instruments. It provides facilities for the issue and redemption of such securities and instruments
and capital events including the payment of income and dividends. Stock exchange functions as
continuous auction markets with buyers and sellers consummating transactions through electronic
trading platform or open cry at a central location such as the floor of the exchange. Stock exchanges
are part of a global securities and the most important component of a stock market. Serve an
economic function in providing liquidity to shareholders in providing an efficient means of disposing
of shares. Zimbabwe stock exchange was officiated in 1896 in Bulawayo and reached the statute
book in January 1974. Trading between centres was done through telephone. As the economy
declined, hyperinflation made Zimbabwe dollar useless and the US dollar was adopted for trade in
the exchange in February 2009 and only risk takers partake in the exchange.

Roles of stock exchange

Economic barometer
Stock exchange serves as an economic barometer that is indicative of the state of the economy. It
records all the major and minor changes in the share prices. It is said to be the pulse of the economy
meaning the state of the economy.
Valuation of securities
Stock market helps in the valuation of securities based on the factors of supply and demand. The
securities that are offered by companies that are profitable and growth oriented tend to be valued
higher. Valuation of securities helps creditors, investors and government in performing their
respective functions.
Transaction safety
Transaction safety is ensured as the securities that are traded in stock exchange are listed, and the
listing of securities is done after verifying the company’s position.
Making the public aware of equity investments
Stock exchange helps in providing information about investing in equity markets and by rolling out
new issues to encourage people to invest in securities.
Merits of stock exchange
Contribution to economic growth
Stock exchange have notably contributed to the growth of the economy and the growth of the
economy has aided to the development of the stock exchange. This led to infuse of the foreign
capital market and the surplus income to the general public and the investors which enabled them
to invest in the capital markets. When the investments in the capital markets increase stock market
capitalization to the GDP also increase
Protection against inflation
Stock investments are a good measure to avoid inflation, as the stock markets investments may
fluctuate during a short time period but due to the general capital appreciation over a longer period
the securities value increases at a rate greater than the inflation rate.

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Diversification
Stock exchange has a feature of diversification of the portfolio allowed under it. The investors can
invest in securities of opposite kinds which mitigates their risk and increase their chance of profits.
Convenience
Equity investments are globally one of the most convenient form of investment due to the facility of
online trading, the immense amount of knowledge available to investors in the form of television
shows, YouTube videos, financial magazines or newspapers and the ease and speed of conducting
the transaction itself.
Dividend income
The companies provide an annual income in the form of dividends to the shareholders. The amount
may differ depending on the profits made by the company that is if they are no profits they will be
no dividends and if they are huge profits then the dividends will be a sizable amount.
Return on investment
Majority of the listed shares equity shares so their value is directly related to the value of the
company, thus when a company is doing well there is a substantial capital appreciation in the shares
of the company which provides good returns.
Right to vote
Equity shares give a right to vote to the shareholders on the matters concerning their interest.
Shareholders are allowed to take important decisions in annual general meetings or extraordinary
general meetings which enables investors of the company to have a say in the companies,
operations.
Interest well-protected by the regulatory bodies
Listed companies are strictly regulated by SEBI Regulations and are to maintain a standard in the
services they provide, the disclosure to be made to ensure investor awareness and prevent corrupt
practices
Demerits of stock exchange
Lack of knowledge
Investors lack knowledge on the investments they make and the companies they invest in. Most of
the issuers rely on the advice of their brokers or general market trend which may not be in their best
interests. Stock exchange requires issuer companies to disclose relevant information but most of the
investors are not able to analyse and utilise the information for their benefits.
Time consuming
The act of trading securities itself has become simple and quick but the process of registration is
more time consuming. The research and analysis that is requires before making an informed
investment is industrious.
Subject to high risk
Equity investment carries the highest amount of risk even in terms of corporate finance.
Shareholders are paid at last after paying all other debts of the corporate debtor even the debt
instrument to both secured and unsecured creditors.

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 DATE ECONET WIRELESS RIOZIM LIMITED SIMBISA BRANDS
ZIMBABWE LIMITED
11 MAY 220.0000 150.0000 251.1352
12 MAY 200.0000 150.0000 251.8120
13 MAY 201.2236 150.0000 241.6393
16 MAY 198.3253 133.0204 241.2353
17 MAY 195.2757 127.5000 226.1540
18 MAY 195.2757 127.5000 226.5140
19 MAY 184.9721 129.0000 219.2016
20 MAY 184.9452 111.2625 220.0107
23 MAY 183.3778 183.3778 219.5332

24 MAY 184.3778 111.2625 219.0250

25 MAY 184.9214 110.0000 218.9362
26 MAY 184.6000 110.0000 218.5742
27 MAY 186.0000 110.0000 218.0000
30 MAY 184.7834 110.0000 215.6507
31 MAY 184.7834 110.0000 215.6507

01 JUNE 200.0000 110.0000 221.0248

02 JUNE 238.4000 110.0000 222.0957
03 JUNE 238.4234 110.0000 222.0900
06 JUNE 231.1356 110.0000 222.8748
07 JUNE 233.1583 110.0000 230.0396
08 JUNE 235.2488 110.0000 230.1436
09 JUNE 222.2058 110.0000 230.0271
10 JUNE 234.8198 110.0000 230.0396
13 JUNE 234.6005 110.0000 230.0500
14 JUNE 234.8988 110.0000 229.9877
15 JUNE 229.0291 110.0000 227.8575

Econet Wireless Zimbabwe

It was launched in 1998 by Strive Masiwa and is the largest telecommunications service provider,
providing solutions in mobile and fixed wireless telephony, public payphones, internet access and
payment solutions.in 2009, the company became the first operator in Zimbabwe to launch data
services under 3G technology. At the same time, it began building an extensive fiber optic network
and also commenced an accelerated roll-out of other key network infrastructure. Key subsidiaries
and associates of Econet are Liquid Telecom, the largest internet service and access provider in

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Zimbabwe and Transaction Payment Solutions a leading provider of financial transaction switching,
point-of-sale, and value-added support services. The company is a subsidiary of a privately-owned
group controlled by its founder Strive Masiwa. The group’s subsidiaries include Econet wireless
international, Econet enterprises and Econet media.

ECONET WIRELESS ZIMBABWE LIMITED

300

250

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150

100

50

0
ay ay ay ay ay ay ay ay Ju
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- M - M - M - M - M - M - M - M 2- 6- 8- - Ju - Ju
11 13 17 19 23 25 27 31 10 14

Comment
From 11 May to 31 May Econet wireless Zimbabwe has had a decrease in share price from 251.1352
to 215.6507. The price share gradually increased between 01 June to 13 June, the share prices were
221.0248 up to 230.0500. From 14 June to 15 June, the share price gradually decreased from
229.9877 to 227.8575.
RioZim Limited
RioZim was incorporated on August 29, 1956 as Rio Tinto Southern Rhodesia Ltd. It was initially set
up to prove and mine the Empress Nickel deposits in Kadoma. RioZim has now grown into a large,
diverse Zimbabwean company that operates across different regions and industries.

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 RIOZIM LIMITED
200
180
160
140
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100
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60
40
20
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11 13 17 19 23 25 27 31 10 14

Comment
The share price for RioZim Ltd decreased from 11 May to 19 May that is from 150.0000 to 111.2625,
from 20 May to 23 May there was an increase from 111.2625 to 183.3778 as shown in the graph.
From 25 May to 15 June the share price was constant meaning there was no increase or decrease in
the graph it remained constant at 110.0000.
Simbisa brands Ltd
Simbisa brands opened its inaugural chicken inn outlet in Harare Zimbabwe in 1987. Since then it has
expanded phenomenally with the addition of new brands and the franchising of existing brands.

SIMBISA BRANDS
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230

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190
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11 13 17 19 23 25 27 31 10 14

Comment

They was a decrease in the share prices of Simbisa brands Ltd from 11 May to 31 May, the decrease
was from 251.1352 to 215.6507. From 01 June to 13 June there was a gradual increase in the share
prices and the increase was from 221.0248 to 230.0500. From 14 June to 15 June they was a slight
decrease from 229.9877 to 227.8575.

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 Combined graph
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- M - M - M - M - M - M - M - M 1- 3- 7- 9- 3-Ju 5-Ju
11 13 17 19 23 24 26 30 1 1

ECONET WIRELESS ZIMBABWE LIMITED

RIOZIM LIMITED
SIMBISA BRANDS

Comment

The slight changes in the share price of Simbisa brands shows that the demand for the services is less
and are less costly than Econet and RioZim. Econet gradually increased throughout the months
which shows that the demand for the shares is less cause they are a bit expensive than RioZim which
is more expensive as it increased and decreased and was later constant. These changes shows that
the economy is not stable prices changes frequently either upward or downwards depending on the
daily rate in the market

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