Foreigners hunt Old Mutual shares on Zimbabwe Stock Exchange

In its half year results, Old Mutual plc said it expected the listing of OMW and Old Mutual Limited (OML), the South African holding company which will initially consist of OMEM, the Group’s Nedbank shareholding and Old Mutual plc, to take place in 2018 at the earliest opportunity after the release of the 2017 full year results.

OMW got a capital injection amounting to £200 million as an initial step in preparing its capital structures and transition of centrally held liquidity buffers.

Old Mutual traded at 454.79 cents at the ZSE on Thursday, a 51 percent premium compared to the price on its primary listing on London Stock Exchange (LSE) and Johannesburg Stock Exchange (JSE) where its trading at 299 cents and 301 cents respectively.

Foreign portfolio flows, from equity purchases by foreign investors, provide both liquidity and stability on the market which is positive for not only listed firms but the country at large.

Analysts say the expected economic turnaround premised on the new dispensation is likely to impact the stock market’s performance and improve foreign participation on the local bourse. –The Source

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