HomeBusinessApex, Cairns de-listing, sign of sick economy: Bloch

Apex, Cairns de-listing, sign of sick economy: Bloch

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THE delisting of Apex Corporation Zimbabwe Limited and Cairns Holdings Limited on the Zimbabwe Stock Exchange (ZSE) signals an ailing economy, an analysts yesterday said.

Gamma Mudarikiri
Own Correspondent

Economic analyst Eric Bloch yesterday said the delisting of the two companies would affect a few investors, although it would raise worries of the same ordeal befalling other listed companies.

“The delisting of the two companies will not have much of an impact on the exchange and investment in general,”  Bloch said. “It will affect a few investors who might worry of possibly the same happening on other listed companies.”

The ZSE in a notice yesterday, announced that it delisted Apex Corporation Zimbabwe Limited and Cairns Holdings Limited with effect from last week Thursday after the companies failed to meet listing requirements.

According to the notice, Apex Corporation early this year applied for a voluntary suspension which was granted in June. The company was struggling to publish financial results, raising suspicion  that it was facing a viability crisis.

According to the notice, the company was in breach of listing rules and was given a period of 30 days by ZSE to regularise its position. ZSE said the company failed to meet its continuing obligations prompting a decision for its delisting.

“In terms of Section 1,8 of ZSE listings rules, holders of Apex Corporation are hereby advised that in view of termination, the paper is no longer tradeable,” part of the notice reads.

ZSE indicated that it had also delisted the food manufacturer Cairns Holdings. The company was in December last year suspended from the local bourse after being placed under  the judicial management of Reggie Saruchera of Grant Thornton Camelsa. Cairns was battling with low capitalisation and a huge debt which forced the entity to apply for a voluntary delisting.

ZSE said a decision had been made to delist the entity.
“In terms of Section 1,18 of ZSE listing rules, holders of Cairns Holding Limited securities are hereby advised that in view of the termination, the paper is no longer tradable,” part of the notice reads.

The delisting of the two companies leaves the local bourse with 63 counters actively trading on the exchange which, however, Bloch said, would not affect the operations of the exchange.

Industry in Zimbabwe, however, continues to battle with low capitalisation due to financial constraints. Capacity utilisation for the manufacturing sector has plunged to 44,2% from 57,2% recorded last year amid warnings by industry that a fresh crisis triggered by capital constraints was looming.

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