VFEX anticipates more counters to list this year

LIVINGSTONE MARUFU

The Victoria Falls Stock Exchange (VFEX), which trades in US dollars, anticipates more listings on the market this year due to concerns over further local currency depreciation and companies’ efforts to protect shareholder value in the face of inflation.

There are currently 12 issuers on VFEX, with more firms anticipated to list in this second half of the year.

Zimplow will become the 13th issuer on VFEX on Friday.

“We anticipate a continued growth trajectory on VFEX from the additional listings that are in the pipeline,” CEO Justin Bgoni told Business Times.

Recently, a number of companies have listed on the VFEX including WestProp Holdings Limited, First Capital Bank, African Sun, Innscor Africa Holdings and National Foods.

In its latest report, securities firm, FBC Securities, said it expects to see additional VFEX listings in the wake of increased dollarisation wave in the market.

FBC Securities said VFEX remains a viable option for investors with US$ liquidity, offering returns and value preservation in a more stable currency than the ZWL$.

VFEX currently hosts a number of quality listings, and has a healthy pipeline of expected listings in the near future, the securities firm said.

The bourse anticipates improved activity owing to increased flow of US$ in the formal economy and the growing number of listings on the bourse in the medium to long term, despite the current liquidity challenges.

Analysts said the liquidity challenges remained a major drawback, limiting pronounced investor participation.

FBC Securities said the global and local economic outlook would remain largely uncertain as a result of high interest rate and inflation dynamics as well as uncertainty around the upcoming elections in Zimbabwe.