Cassava's trade suspension another thorn in ETF's side

Author Name
Rugare Mukanganga
Author
Stock Market 1 month ago

Having violated ZSE listing requirements, shares of Cassava Smartech have been suspended from trading (effective October 1st 2021). The firm was due to publish its set of financial statements for the year-ended February 2021. Seven months later & no financials are out.

Cassava’s market cap stood at ZWL 81.5 billion, with the firm well-positioned among the ZSE’s basket of “market heavies” – the Top 10 Index. Before suspension, the counter was up 383% trading at 3,145.6 cents per share.

As one of the top counters on the ZSE, Cassava is also part of Old Mutual Zimbabwe’s exchange traded fund (ETF) introduced in January this year. The ETF itself was up 212% before Cassava’s suspension, trading at 312 cents per share.

Notably, CBZ (another Top 10 counter & ETF stock) is one of this year’s worst-performing stocks on the ZSE, with a 7.11% gain as of September 30th this year. With, in-effect, two out of the ten stocks no longer contributing to the ETF’s performance, the weighting has become imbalanced and does not currently represent the full trading potential of ten of Zimbabwe’s largest listings.  


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