Victoria Falls Stock Exchange Trading Handbook 2025
www.ihsecurities.com
TABLE OF CONTENTS
The Victoria Falls Stock Exchange
Regulations Affecting Foreign invest
Custodial Services
Transfer Secretaries
Trading Costs
Trading Costs VFEX ZDR
Trading Costs VFEX Bonds
Trading Under CSD
Listed Securities
Securities Trading
Personnel Profiles
Contact Details
3
5
6
7
8
9
10
11
13
14
19
24
The Victoria Falls Stock Exchange
The Victoria Falls Stock Exchange (VFEX) was established in 2020 and is a subsidiary of the Zimbabwe Stock Exchange
(“ZSE”). It was established to kick start the Offshore Financial Services Centre (OFSC) earmarked for the special
economic zone in Victoria Falls. It has 20 member firms and 16 listed securities as of the 31st of December 2024. The
VFEX operates according to the Securities and Exchange Act (Chapter 24:25). The VFEX aims to cater to fungibility of
dual listed shares and broaden the horizon for capital markets.
▪
▪
Trading days and times are Monday to Friday:
⮚
Pre-opening: 09:00am - 09:30am
⮚
Trading : 09:30am - 13:00am
Settlement is T+3 working days basis. However, testing for T+2 settlement commenced on the 13th of
January 2025, with implementation still in the pipeline.
Trading System and Settlement
The VFEX trades on an Automated Trading System (ATS). Post the pre-opening session from 9am to 09:30am, the
market trades from 09:30am to 13:00am on a daily basis.
Trading and Settlement Currency
United States Dollars (US $)
Minimum Trade
1 share
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3
The Victoria Falls Stock Exchange
Complaints Procedure
If investors have complaints they wish to lodge, this can be done via the VFEX. If still not satisfied, complaints can be
directed to the Securities and Exchange Commission of Zimbabwe (SECZ).
Market Regulation
The VFEX is supervised by the SECZ. The SECZ is a statutory body established in terms of the Securities Act. Members
of the VFEX are licensed by the SECZ, which also determines the level of capitalisation required for practising
members of the VFEX.
The SECZ has the power to intervene in the event that irregularities arise in the areas of conduct of licensed members,
financial difficulties, rejection of applications and/or termination of membership.
The VFEX supervises and monitors the trading process to ensure transparency in the market and to prevent
manipulation of the market. All trades for listed securities by members of the VFEX are declared to the VFEX. Any
unethical or criminal activities are dealt with within the framework of the rules and regulations governing stock
market transactions in Zimbabwe.
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Regulations: VFEX Foreign Investors
Foreign investors can participate on the bourse provided they bring in their capital through normal banking channels.
No prior exchange control approval is necessary for a foreign investor to participate on the Victoria Falls Stock
Exchange. Authorised dealers, acting on behalf of non-resident investors and FCDA holders, receive funds for onward
transmission to stock brokers for purchase of shares.
Settlement and clearing of transactions is effected through the CSD system, authorized by custodians.
Withholding taxes on dividends are deducted at source at the rate of 5% dividend tax and exemption from capital
gains withholding.
Repatriation of income and capital is free. This is subject to proof that payment for any purchases was made with
funds received through formal banking channels.
Please note that it is now mandatory to trade through the CSD, therefore all investors transacting on the VFEX must
have a CSD account open with a local custodian as All shares will be dematerialised into electronic form prior to them
trading/settling under the CSD.
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5
Custodial Services VFEX
Below is a list of companies that provide Custodial Services:
Stanbic Bank
CABS Custodial Services
Telephone: +263 242 759 471-9
Email:
custodyzim@standardbank.co.za
Telephone: +263 242 308 400
Email:
CustodialServicesDivision@cabs.co.zw
FBC Custodial Services
CBZ Custodial Services
Telephone: +263 242 704145-7
Email:
CustodialServices@fbc.co.zw
Telephone: +263 242 748 050-79
Email:
custodialservices@cbz.co.zw
ZB Custodial
Telephone: +263 8677 002 001/005
Email:
Paidamoyo Mberikwazvo
(PMberikwazvo@zb.co.zw)
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Transfer Secretaries VFEX
Corpserve
ZB Transfer Secretaries
Address:
2nd Floor, ZB Centre, Cnr. First St /
Kwame
Nkrumah Ave, Harare
Telephone: +263 242 750 711, +263 772 266 225
Fax:
+263 242 752 629
Email:
corpserve@escrowgroup.org
Address:
21 Natal Road, Belgravia, Harare
Telephone: +264 242 781 361
Email:
transfersecretaries@zb.co.zw
First Transfer Secretaries
Address:
1 Armagh Road, Eastlea, Harare
Telephone: +263 242 782 872
Fax:
+263 242 749 048
Email:
info@fts-net.com
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Trading Costs VFEX
Buying (%)
Selling (%)
Brokerage Fees
0.6
0.6
Securities and Exchange Commission Levy
0.15
0.15
Victoria Falls Stock Exchange Levy
0.15
0.15
CSD Levy
0.04
0.04
Stamp Duty
0.25
-
-
1.00
VAT @ 15% on Brokerage
0.09
0.09
Total Transaction Costs
1.28
2.03
Capital Gains Withholding Tax
Total Costs for Buying and Selling
3.31
Note:
▪
Total round trip charge 3.31%
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Trading Costs VFEX ZDR
Buying (%)
Selling (%)
Brokerage Fees
0.1
0.1
Securities and Exchange Commission Levy
0.15
0.15
Victoria Falls Stock Exchange Levy
0.15
0.15
CSD Levy
0.04
0.04
Stamp Duty
0.25
-
-
1.00
VAT @ 15% on Brokerage
0.015
0.015
Total Transaction Costs
0.71
1.46
Capital Gains Withholding Tax
Total Costs for Buying and Selling
2.16
Note:
▪
Total round trip charge 2.16%
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Trading Costs VFEX Bonds
Buying (%)
Selling (%)
Brokerage Fees
0.065
0.065
Securities and Exchange Commission Levy
0.15
0.15
Exchange Levy
0.012
0.012
CSD Levy
0.01
0.01
Stamp Duty
-
-
Capital Gains Withholding Tax
-
1.00
VAT @ 15% on Brokerage
0.00975
0.00975
Total Transaction Costs
0.25
1.25
Total Costs for Buying and Selling
1.49
Note:
▪
Total round trip charge 1.49%
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Trading Under CSD
Prescribed procedure to open and trade through CSD
▪
▪
▪
▪
▪
▪
Open an account with a local custodian of your choice. If this is a new account opening, you will have to
comply with the KYC process and formal account opening requirements of your selected custodian.
The two available depositories are Chengetedzai Depository Company Limited and ZSE Depository,
representing select stocks.
If you already hold an account with a local custodian, simply confirm that the custodian has opened a CSD
account on your behalf or formally request that this be done.
The custodian will then formally upload your details into the CSD system, and a CSD account number will be
generated on your behalf.
Investors should ensure that they have both a CSD account number, and a Custodian account number before
trading on the CSD.
Carefully note that it will only be possible to transact in shares which have been dematerialised through a
CSD account that has been opened in the way described above.
Dematerialising shares
▪
▪
▪
▪
▪
The dematerialisation process begins with investors submitting their physical share certificates (with signed
securities deposit forms) to their custodian.
The process of dematerialisation takes up to 72 hours.
Brokers can assist investors in this process by liaising with the custodian on their behalf, once the investor has
formally instructed the custodian to dematerialise their share certificates as per above.
Investors will only be able to send buy instructions to their broker after placing funds in their account with
the custodian.
Investors will only be able to send sell instructions to their broker in counters that have been on-boarded to
CSD once their shares have been dematerialised.
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CSD Cycle
Trading and Settlements Flow under CSD
▪
▪
▪
▪
▪
▪
▪
▪
▪
▪
▪
After trading and confirmation of deals executed by brokers in the morning, matching of the deals for
settlements purposes on the CSD will be done at 14:00 hours on T+0.
Final allocation of trades is done by 15:30 hours on T+0.
The custodian model is a beneficial owner, double entry model, therefore contract notes for purchase deals
are generated to match corresponding sell deals. This means an investor can receive several contract notes
for one trade, depending on how many different sellers constituted his/her buy trade.
CSD notifies stockbrokers and custodians of final allocations after matching.
The CSD system generates a pre-settlement report on T+1 by 14:30 hours and settlement funds need to be in
place at this time.
Trades settle on T+3 by 11:00 hours.
Final settlement reports are generated by 14:30 hours on T+3.
Defaults attract a penalty of 0.2% of the trades value of the transaction for every day that the transaction
remains outstanding post settlement date. The penalty shall be levied in accordance with CSD Penalties
Framework and CSD Business Process Flows
Failed trades attract 2% of the value of the transaction as a penalty, 100% of the amount goes to the
Guarantee fund.
Withdrawal of certificates from the CSD takes 72 Hours and attracts a fee of US$10 per certificate payable to
the Depository company at the prevailing interbank rate.
Transfers and pledges can also be effected within the CSD system.
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VFEX Listed Securities (as at 31 Dec 2024)
Bloomberg
Sector
Ticker
Market Cap
(USc)
Issue (mn's)
(US$ mn's)
ASUN:ZH
Hospitality
2.81
1,477.90
41.53
Axia Corporation Limited
AXIA:ZH
Specialty Retail
8.52
556.00
47.37
BNC
BIND:ZH
Mining
-
1,272.73
-
Caledonia
CMCL:ZH
Mining
1,600.00
0.62
9.92
Edgars
EDGR:ZH
Retail
1.10
604.25
6.65
FCB
FCA:ZH
Banking
4.00
2,160.87
86.43
Innscor Africa Limited
INN:ZH
Conglomerate
47.11
575.78
271.25
Invictus Energy
Mining
10.00
98.53
9.85
NedBank Zim Depository Receipts
Finance
1,200.00
0.16
1.92
Padenga
PHL:ZH
Mining
18.20
544.30
99.06
Seed Co Intl
SCIL:ZH
Agro
22.00
393.65
86.60
Simbisa
SIM:ZH
Retail
31.85
562.18
179.06
1,005.00
30.00
301.50
1.50
344.58
5.17
Zimplow
▪
Shares In
African Sun
West Prop Holdings Limited
▪
Price
Real Estate
ZIMPLOW:ZH
Manufacturing
Dual listed shares registered on the ZSE and currently in suspension are expected to re-list on the VFEX as per
recommendations from the Ministry of Finance and Economic Development. However, discussions with regards
to re-listing of Old Mutual and PPC are still ongoing.
The VFEX is ordinarily priming itself to offer capital-raising opportunities to a specific category of companies,
being hard currency earners, so typically exporters and companies with a regional footprint.
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Securities Trading
SERVICE OFFERING & APPROACH
Inter-Horizon Securities (Pvt) Limited (IH Securities) is a securities trading business within the Inter-Horizon Group. IH Securities is registered
as a dealing member of the Zimbabwe Stock Exchange and as a Broker/Dealer at the Securities Exchange Commission of Zimbabwe.
IH Securities offers world class services and we have invested in the technology, systems, as well as experienced talent to ensure that we
deliver the best execution of trades and research for clients.
APPROACH
SERVICES
AFTER TRADE
IH Securities understands that investors
have individual needs. We are therefore
committed
to
providing
service
customized to your needs. To better
meet your individual needs, we offer a
wide range of advice and research
choices, from one-on-one consultations
to comprehensive technical reports.
Whatever your preference, we provide
the services that best fit your investing
style. We are also committed to
providing investors with fact-based
information of the highest quality that
they can trust, to enable them to make
the most optimal decisions regarding
their investments.
Our services to investors include the
provision of high-quality research on
which our clients can make sound
investment decisions; regular updates on
the market and any news that we expect
to move the market; daily electronic
notices of our recommendations;
investment
presentations
and
comprehensive reporting on investor
portfolios.
Ensuring good services to investors does
not end with assisting the investor to
decide on optimal trades. We are
committed to ensuring that the investor
has an effortless after-trade experience
with us
Our wide industry network and vast
experience trading in equities, and
carrying out high quality research across
industries enables us to analyze,
understand and make recommendations
on individual counters and the market as
a whole.
To ensure an effortless after-trade
experience for the investor, IH securities
has put together a client focused team of
brokers,
that
will
communicate
effectively with investors on trade
quantities as well as prices, as soon as
trades are executed.
In addition to our Brokers, IH Securities
has also invested in an efficient back
office capable of quickly effecting trades,
settlement and payment. This efficiency
is facilitated by the state-of-the-art
Sybrin system.
15
IH Securities Research
At IH Securities, we believe fact-based research is a
crucial part of any investment decision. As such,
Equity Research underlies all aspects of IH Groups’
business, from new issues and secondary
fundraisings, to supporting our corporate broking and
sales teams. The quality, accuracy and timeliness of
our Equity Research is key to our ability to service our
institutional and corporate investors and, in light of
this, we have built a highly experienced team of
analysts covering the entire domestic market.
The Equity Research team provides comprehensive
research on local companies listed on the Zimbabwe
Stock Exchange. IH Securities adopts what we like to
call ‘’the house view’’, a team approach to stock and
sector selection. We recognize that market sectors
are linked to each other, thereby necessitating a good
understanding of all sectors. By covering the entire
market we gain a perspective on the stock market as
a whole, helping us to identify broader economic
trends and their likely effect on stock prices.
As a client of IH Securities, you will have full access to:
QUALITY RESEARCH
Propriety research and a wide range of third-party perspectives to
help you build a portfolio optimal for you.
RELIABLE RATING SERVICES
Objective Equity ratings based on IH Securities analysis.
DAILY MARKET UPDATE
Daily coverage of ZSE and VFEX listed companies and business news
that may impact the market
RESEARCH FLASH
Daily electronic alert ensuring that investors are aware of our current
recommendations as early in the day as possible
COMPREHENSIVE REPORTING
Monthly statements and portfolio valuations encompassing
investment quantities, costs, market values, yields and changes in
holdings.
DOMESTIC NEWSLETTER
Regular newsletter reviewing the international and local economies,
major stock and financial markets..
INVESTMENT PRESENTATION
We will hold investment presentations periodically for our clients.
16
TRANSACTIONS
2012
2015
AGRI-INDUSTRIAL
2013
INDUSTRIAL
Lead Financial Advisors
& Sponsoring Broker
Lead Financial Advisors
and Sponsoring Broker
US$ 8,000,000
Not applicable
Financial advisors on the
rights issue capital raise
for the business.
Lead financial advisors
and sponsoring broker to
Innscor with regards to
unbundling and listing
Innscor Quick Service
Restaurant Business.
FMCG
2015
FMCG
2014
AGRI-INDUSTRIAL
2015
Lead Financial
Advisors and
Sponsoring Broker
Lead Financial Advisors
and Sponsoring Broker
US$5,000,000
Market Capitalisation
US$77,600,000
Lead financial advisers
with regards to a rights
issue.
Lead financial advisors
and sponsoring broker
to Unbundling and
Listing on the ZSE of
Simbisa Brands
Limited.
2016
RETAIL & DISTRIBUTION
Lead Financial Advisors
& Sponsoring Broker
Buy-Side Advisor And
Broker
Lead Financial Advisors and
Sponsoring Broker
Not applicable
US$ 40,100,000
Provided valuation,
demerger and
restructuring services.
Market Capitalisation
US$40,620,000
Private placement of 5% of
issued share capital of
SeedCo, outright purchase
of a 10% stake in SeedCo
from aico & the granting of
a call option to purchase
10% of the issued share
capital of SeedCo.
Lead financial advisors and
sponsoring broker to
Unbundling and Listing on
the ZSE of Axia Corporation
Limited.
MANUFACTURING
2016
AGRI-INDUSTRIAL
Sponsoring Broker
US$ 4,000,000
Sponsoring broker to a
transaction for the
conversion of shareholder
debt to equity.
17
TRANSACTIONS
2017
MINING
2017
Lead Financial Advisors and
Sponsoring Broker
Lead Financial Advisors and
Sponsoring Broker
Not applicable
Not applicable
Lead financial advisors and
sponsoring broker to a
transaction for the
establishment of the 2017
Padenga Share Option Scheme
and implementation of the
indigenisation plan.
2020
HOSPITALITY
Lead Financial Advisors & Sponsoring
Broker
Not Applicable
Lead Financial Advisors relating to the
Acquisition of the entire issued share
capital of Dawn Properties Limited in
exchange for an issuance of African Sun
Limited ordinary shares listed on the ZSE.
FMCG
Lead financial advisors and
sponsoring broker to the
Scheme of Arrangement for the
offer to minority shareholders
from Innscor Africa Limited.
2020
REAL ESTATE
Lead Financial Advisors &
Sponsoring Broker
FMCG
HOSPITALITY
FMCG
2018
2020
Lead Financial Advisors and Sponsoring
Broker
Lead Financial Advisors
&
Sponsoring Broker
Not applicable
ZWL$70,000,000
Lead financial advisors and sponsoring
broker to the dual listing of Simbisa
Brands Limited with a secondary listing
on the London Stock Exchange
Alternative Investment Market (“AIM”) by
way of a new issuance of ordinary
shares; and the acquisition of Foodfund
in exchange for an issuance of Simbisa
ordinary shares listed on AIM.
2021
HOSPITALITY
MINING
RETAIL
RETAIL
Lead financial advisers
with regards to a
rights issue.
2021
MINING
Lead Financial Advisors &
Sponsoring Broker
Lead Financial Advisors &
Sponsoring Broker
Not Applicable
Not Applicable
Relating to the secondary listing on
the VFEX by issue of Zimbabwean
Depository Receipts.
Relating to the termination of the
ZSE listing in favour of the VFEX.
Not Applicable
Relating to The Acquisition of the entire
issued share capital of Dawn Properties
Limited by African Sun Limited whereby
1 African Sun Limited
Share will be offered for every
3.988075946 Dawn Properties Limited
Shares Held.
18
TRANSACTIONS
2022
AGRO-INDUSTRIAL
MINING
2022
2023
Lead Financial Advisors &
Sponsoring Broker
Lead Financial Advisors &
Sponsoring Broker
Not Applicable
US$30 million
Relating to the termination of the
ZSE listing in favour of the VFEX.
Relating to the listing and
issuance of the debt instrument
FMCG
HOSPITALITY
BANKING
2023
BANKING
RETAIL
Sponsoring Broker
HOSPITALITY
Lead Financial Advisors &
Sponsoring Broker
Lead Financial Advisors &
Sponsoring Broker
Not Applicable
Not Applicable
Relating to the termination of the
ZSE listing in favour of the VFEX.
Relating to the termination of the
ZSE listing in favour of the VFEX.
ZWL$44,4900,000,000
Sponsoring broker to CBZ Holdings’
acquisition of a stake in First Mutual
Holdings from NSSA.
2023
HOSPITALITY
2023
RETAIL & DISTRIBUTION
2023
FMCG
2023
REAL ESTATE
Lead Financial Advisors &
Sponsoring Broker
Lead Financial Advisors &
Sponsoring Broker
Sponsoring Broker
Not Applicable
Not Applicable
Market Capitalisation
ZWL$48,552,000,000
Relating to the termination of the
ZSE listing in favour of the VFEX.
Relating to the termination of the
ZSE listing in favour of the VFEX.
Sponsoring broker to the listing of
Revitus Property Opportunities on the
Zimbabwe Stock Exchange by way of
initial public offering.
2024
RETAIL
Lead Financial Advisors &
Sponsoring Broker
Not Applicable
Relating to the termination of the
ZSE listing in favour of the VFEX.
19
Lloyd Mlotshwa, Director / Head of Sales (IH Group)
Lloyd has over 15 years working experience in various capacities in investment banking spanning treasury
operations, equities research and sales, equities trading and corporate finance. He is currently an Executive
Director at IH Group, primarily overseeing the brokerage business and heading equity sales, including day to day
involvement in the research unit. He also actively participates in deal origination and execution in the corporate
finance SBU. Lloyd is a qualified stockbroker and registered member of the Zimbabwe Stock Exchange; he holds a
Masters in Development Finance from the University of Stellenbosch and a Bachelor of Commerce in Financial
Management from UNISA.
Kudzai Machuma, CFA, General Manager
Kudzai has more than 15 years working experience in investment markets, at different institutions. Prior to joining
IH Securities, he previously worked as an Investments Analyst, then headed up the research team, before moving
to the dealing desk. Kudzai is a CFA® charterholder. He also holds a Master of Science Degree in Finance and
Investment, and an Honours degree in Business Studies.
Kadmiel Zezai, Group Finance Manager
Prior to joining IH Group (Private) Limited, Kadmiel, was the Back Office Manager for Genesis Securities (Private)
Limited. He is a member of the Association of Chartered Certified Accountants and the Public Accountants and
Auditors Board, Zimbabwe. Kadmiel has experience in finance and administration spanning over 15 years. He
holds a Masters of Business Administration (Banking and Finance) from National University Science and
Technology and Honours Degree in Business Studies from University of Zimbabwe.
PERSONNEL PROFILES
21
Brian Zhanero, Equity Sales Trader
Brian graduated from Brunel University London with a Bachelor of Science (Hons) in Economics
and Business Finance in 2016. Brian has since gained more than 5 years' experience in financial
Markets in various capacities. Prior to joining the IH trading team, Brian started his career through
a graduate trainee program at a local bank, before moving to take up the Treasury Markets desk at
Standard Chartered Bank Zimbabwe.
Tafadzwa Michele Gutsa, Back Office Manager
Tafadzwa has a great deal of experience in the brokerage market. Tafadzwa worked as a Scrip
Officer for Genesis Securities for two years before joining IH Group, and she has had 12 years of
back-office experience. She is a member of SAIFM and holds a certificate as a JSE Equities
Settlement Officer; she is also currently enrolled with CIMA.
Isabel Samkange, Client Relations, Compliance and AMLR Manager
Isabel obtained her public relations qualification at Varsity College in Port Elizabeth in 2010. While
in Port Elizabeth she worked part time for the Cancer Association of South Africa. On returning to
Zimbabwe she worked as the workshop administrator at AFGRI EQUIP, (a John Deere dealership).
Isabel completed her degree in Human Resources Management from the Management College of
Southern Africa (MANCOSA) in 2015. Isabel was recently awarded a certificate in Compliance by
the International Compliance Association (ICA), awarded in association with Alliance Manchester
Business School, the University of Manchester.
PERSONNEL PROFILES
22
Vanessa Machingauta, Equities Data Analyst
Vanessa graduated from The University of Cape Town in 2018 with a BCom in Economics and
Statistics (Mathematical). She completed a graduate traineeship in management consulting with
Industrial Psychology Consulting (IPC) before joining the finance industry. She is currently working
on her Actuarial board exams and has a keen passion for quantitative finance.
Gamuchirai Hogwe, Equities Research Analyst
Gamuchirai graduated with a MEng (Hons) in Aerospace Engineering with Management from the
University of Manchester in 2017 and also holds a Certificate in Corporate Finance from IPAZ. Before
joining the IH research team, she was an Investment Banking Analyst at First Capital Bank. She is
currently pursuing her CFA® charter and has a keen interest in investment management.
Sherese Howe, Office Assistant
Before joining the IH Securities, Sherese worked for Ezytrack (Private) Limited as an Office
Administrator for two years. Currently, she is an aspiring Chartered Account with ACCA and has a
great interest in the finance industry.
PERSONNEL PROFILES
23
CONTACT US
Telephone Numbers
Telephone Numbers
+263 (242) 745 133
+263 (242) 745 119
+263 (86) 77 00 9998
+263 (244) 745 133
+263 (242) 745 139
Physical Address
+263 (242) 745 937
+263 8644 110 474 Block 3 Tunsgate Business Park,
30 Tunsgate Road, Mount Pleasant,
Harare, Zimbabwe
Physical Address
Block 3 Tunsgate Business Park,
Email
30 Tunsgate Road, Mount Pleasant,
Harare, Zimbabwe
research@ihsecurities.com
Email
research@ihsecurities.com
Website
www.ih-group.com
Website
www.ih-group.com
Disclaimer
This document has been prepared by IH Securities to provide background information
about the securities and (or) markets mentioned herein, the forecasts, opinions and
expectations are entirely those of IH Securities. This document was prepared with the
utmost due care and consideration for accuracy and factual information; the forecasts,
opinions and expectations are deemed to be fair and reasonable. However there can be
no assurance that future results or events will be consistent with any such forecasts,
opinions and expectations. Therefore the authors will not incur any liability for any loss
arising from any use of this document or its contents or otherwise arising in connection
therewith. Neither will the sources of information or any other related parties be held
responsible for any form of action that is taken as a result of the proliferation of this
document.