ZSE halts trading in Truworths shares
THE Zimbabwe Stock Exchange (ZSE) has halted the trading of Truworths Limited shares effective March 7 after the clothing retailer asked for voluntary suspension.
In a notice to stakeholders, the ZSE indicated this was to allow the firm to attend to some compliance-related matters.
“The Zimbabwe Stock Exchange Limited hereby notifies the investing public that trading of Truworths Limited shares on the Zimbabwe Stock Exchange will be halted effective 07 March 2024,” said ZSE chief executive officer Justin Bgoni.
“Truworths has applied for voluntary suspension of its securities from trading on the ZSE to attend to some compliance-related matters.
“The application is under consideration. The market will be advised of any further developments with regards to this matter in the next few days,” he added.
The clothing retailer recently indicated that sales and profitability continued to be adversely affected by the importation of sub-standard clothing and footwear by the informal sector that does not pay tax.
Additionally, the pricing distortions give an unfair advantage to the informal sector, according to the clothing retailer. This comes as the country has seen continued growth of the informal sector.
In a trading update for the six months to January 7, 2024, Truworths chief executive officer Bheki Ndebele welcomed the Government’s recent announcement regarding the continued use of the multi-currency regime until 2030. He however acknowledged the challenging obtaining environment.
“The trading environment has remained complex and uncertain,” he said.
During the period, overall unit sales improved by 5 percent compared to the same period. Cash sales accounted for 60,1 percent of total sales while the remainder was accounted for credit sales.
“All credit sales were in US dollars, the growth in the credit sales is being hampered by lack of US dollar long-term finance.
“Of the cash sales 71,4 percent were in US dollars and 28,6 percent in Zimbabwe Dollars,” said Mr Ndebele.