Innscor, Padenga Power VFEX bull run
LIVINGSTONE MARUFU
The Victoria Falls Stock Exchange (VFEX) market capitalisation has surged to an all-time high of US$1.861 billion, driven by strong rallies in Innscor Africa Limited and Padenga Holdings during the second half of 2025, Business Times can report.
Fuelled by robust gains in key counters, the VFEX has soared 44% year-to-date (YTD) in market capitalisation, cementing its position as one of the most rewarding bourses in the region.
Innscor’s share price climbed 61% YTD to US$0.75, while Padenga’s shares skyrocketed 184% to US$0.54
Morgan & Co investment analyst Tafara Mtutu said the sharp rally in these two counters reflects strong company fundamentals and sector-specific tailwinds.
“The exchange has significantly re-rated upwards, especially in the second half of 2025, mainly because of two stocks – Innscor and Padenga,” Mtutu said. “Innscor, which recently breached US$1 billion in sales, saw its share price moving 61% YTD to US$0.75 per share with the support of increased dividend payouts to investors.
Padenga has risen by 184% to US$0.54 per share because of the ongoing gold price rally, which has resulted in its half-year earnings from gold jumping by 204% to US$41 million.”
Mtutu added that First Capital Bank has also contributed to the VFEX’s market capitalisation growth, supported by a strong dividend yield that pushed its share price 83% higher to US$0.08 per share to date.
He said the rise in daily turnover on the bourse reflects growing investor participation and liquidity in the US dollar-denominated market.
“We also add that most, if not all, dividends are now being paid fully in US$, regardless of where the stock is listed,” he said.
Analysts attributed the VFEX’s performance to a mix of fundamentals including
“Ahead of the June 30 reporting period, most blue chips listed on VFEX are known to pay dividends religiously, and investors have been positioning themselves for this income stream, leading to excess demand for scrip,” Mtutu said.
“The economy is now tilted towards full dollarisation, with USD transactions dominating more than 80% of aggregate transactions. This structure has also been reflected among investment firms, pension funds, and institutions. The gold rally has played a role as well, given that a handful of counters listed on VFEX are gold-related.”
FBC Securities research analyst Enock Rukarwa concurred, saying the surge in market performance has been largely underpinned by increased USD liquidity in the economy.
“I think the increase in USD in the country has risen beyond what companies need in their day-to-day operations, and this has allowed investors to plough back some of the extra funds into investments on the VFEX,” Rukarwa said.
“To this effect, we have seen a lot of investors piling into long-undervalued stocks like Innscor and Padenga in the last couple of months, and these have had a great second-half performance so far. That said, we do not foresee further bull runs on the VFEX considering that most, if not all, the upside has been exhausted.”
The VFEX’s sustained rally underscores growing investor confidence in hard currency-denominated assets, particularly those offering strong dividend yields and exposure to the resilient gold and consumer sectors.
