Last year the Zimbabwe Stock Exchange launched its own direct trading platform, ZSE Direct putting in competition with FINSEC’s C-Trade. Now a year later they are adding a new feature to their offering-Odd Lot Board. This may be their attempt to lure individual, casual and low-value investors. They have now set the minimum buy amount to $500 ZWL which is something most people can afford.
To those wondering what Odd Lot is it’s simply an investment term which means that you can now purchase less than the normal unit of trading. Generally, the minimum order you can place is 100 shares. With an Odd Lot, an exchange allows you to buy less than 100 shares. In this case, the ZSE now will even allow you to buy a single share!
Below is the full text of the announcement:
Addition of Odd Lot board on ZSE Direct
With the aim of increasing financial inclusion in the capital markets, the Zimbabwe Stock Exchange (“ZSE”) has, over the past few months, made strides that have enabled even the first time investor to experience the full investment process of having their own stockbroking account and their own Central Securities Depository (CSD) account.
In July 2021 the ZSE introduced a new feature, ZSE Direct Instant, making it easier and much faster for investors to access proceeds from the disposal of their securities on the market. As we celebrate the first anniversary of ZSE Direct, we are excited to announce that with effect from September 2021, the Odd Lot board will now be available on ZSE Direct.
The addition of the Odd Lot Board on ZSE Direct, means that all ZSE Direct clients can now place bids or offers for volumes from 1 up to 99. The conditions to take note when trading on the Odd Lot Board include;
-The permissible trading quantity is from 1 to 99. Volumes of 100 and multiples therefore have to be put on the Regular Board;
-The minimum buy amount remains ZWL$500 but there is no minimum value on the sell side;
-The transaction charges remain the same
-The reference price for the Odd Lot Board, will be the price set in the Regular Board;
-The sell proceeds on Odd lot orders will be credited to client’s wallets on the same day after a successful matched and confirmed seller order.
Continuous support and feedback from stakeholders has aided us to continue exploring initiatives that promote retail participation and increase Financial Inclusion.
For more information, email firstname.lastname@example.org
For and behalf of the Zimbabwe Stock Exchange
Chief Excutive Officer
Zimbabwe Stock Exchange Limited
Date of Issue: 07 September 2021