Is Zimbabwe Stock Exchange doing well? (31-07-07)

INVESTORS must be tempted to think that the Zimbabwe Stock Exchange is now an efficient market after Kingdom share price surged to Z$60 000 during the morning call yesterday before hitting Z$70 000, a massive 180% jump at close of trade following the release of a cautionary indicating that it was in

talks that might lead to a merger with Tanganda, Meikles Africa and unlisted Cotton Printers.
 Meanwhile Meikles rose to Z$210 000 adding 10.53% during the morning call before closing trade at Z$215 000 while investors initially remained confused as to how Tanganda fitted into the whole equation and the counter was unchanged at Z$40 000 before it finally found favour and closed up 50% at Z$60 000.
Meikles already holds a 10% stake of the issued share capital of Kingdom.
Kingdom had closed at Z$25 000 on 30 July and the sudden jump is an addition of 180% of value to investors in the counter.
If the scrip was available on the market as the counter fell below Z$40 000, punters who had taken a position are already lining to take profits we guess.
We are delighted to see that our super performing market has proved to be an ‘efficient discounter’ of all publicly available information and duly priced Kingdom at its fair value.
THE Industrial Development Corporation is still fighting for the return of a share certificate in respect of a Borrowdale Brooke property which it intends to dispose of to recoup the $400 million it had invested in liquidated ENG Asset Management.
It is more than six months since the IDC sought leave in December last year to execute the court judgment granted in March of the same year in which ENG liquidator Reggie Saruchera was ordered to surrender the share certificate to IDC to facilitate the sale in execution.
The certificate, which belongs to Gilbert Muponda, one of the ENG’s former directors, is for 100 units in Anvoni Investments, which comprise one house in the upmarket Borrowdale Brooke suburb. The house was valued at $400 million at the time of the liquidation.
Saruchera has refused to release the certificate on the grounds that there was an appeal pending at the Supreme Court against the High Court’s decision to have the share certificate handed over to IDC.
This is despite the fact that High Court judge Justice Chinembiri Bhunu had ruled in IDC’s favour when it approached the court for leave to execute the court order pending the appeal.
Justice Bhunu had, in his judgment, found merit in the IDC application.
He found that IDC had proved that beyond reasonable doubt that Saruchera’s prospect of success on appeal were virtually nil.
At the time Justice Bhunu said although the noting of an appeal automatically suspends the decision appealed against, this was a rule of practice rather than a rule of law such that the court was at liberty to use its discretion to or not to grant leave of execution pending appeal. The latest turn of events is part of a three-year battle in which IDC is seeking legal recourse to recover the money it invested in the now defunct ENG.
IDC got the legal ball rolling in February 2004 when it sought an order against then ENG directors Muponda and Nyasha Watyoka for $499 782 922,90 which ENG misappropriated.
In terms of the order, granted by Justice Charles Hungwe then, the two were held personally liable for all the debts and liabilities due to IDC.
However, shortly afterwards the two were specified in terms of the Prevention of Corruption Act, with Saruchera being appointed the investigator. Upon hearing of the specification the Deputy Sheriff unilaterally stopped the sale in execution of the shares and handed the share certificate to Saruchera.
The IDC then demanded the share certificate from Saruchera, who refused to release it, prompting the IDC to seek a court order for the sale in execution of the shares in March last year and the enforcement of the March ruling in December of the same year

Post published in: Economy

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