The suspended trading of MTN Zakhele shares will resume on Monday, the 2nd of December 2013, said the administrators of the BBBEE scheme in a statement released today.
The trading of MTN Zakhele shares on an over the counter (OTC) platform were suspended yesterday after the trading was launched on Monday and encountered technical difficulties.
The three years old scheme attracted about 120000 black investors who became eligible to trade their shares with other black investors on Monday. Technical glitches were apparent on Monday with readers in this platform, ujuh.co.za, expressing frustration after struggling on countless occasions to access the MTN Zakhele trading platform.
In suspending the trading yesterday, MTN Zakhele chairperson, Thulani Gcabashe, said the trading platform was overloaded.
Today’s statement said “Due to the unprecedented interest in buying and selling these shares, MTN Zakhele decided to suspend trading on Wednesday to add capacity and re-test the system prior to the resumption of trade.”
Gcabashe said “To protect the traders, we are endeavouring to ensure that the system is sufficiently robust to accommodate the incredibly high demand. We are also taking steps to increase capacity at the call centre to handle the massively increased calls – from 4,500 per day in the previous week to over 79,000 per day the next.”
The team is working round the clock to attend to these matters and to re-test the system. We are committed to opening trade again at 9am on Monday morning, rather than having a system that is intermittently overloaded,” said Gcabashe.
The statement said “Even with trading suspended, registration is still possible on the website and the call centre.”
The statement added that when trading opened in Monday, 13% of shareholders had registered for trading. The process to change details or to apply to become a new shareholder requires support documentation to be submitted.
Gcafashe emphasised that “Both buyers and sellers cannot register and then trade immediately, which is the reason we opened this process almost a month before trading started.”
He said the capturing and approval process, especially when additional documents need to be provided, can take more than three days. “In addition, a new applicant or potential buyer still has to deposit funds into the MTN Zakhele bank account before they can trade, which can also take another two days. We have employed additional staff to deal with the volume and all staff are working overtime to try process forms as quickly as possible.”
“We’re delighted with the high level of interest, as the trading price of the shares depends on demand on the trading platform and liquidity,” said Gcabashe. “With this level of interest, this will continue to be a truly successful scheme.”