ZSE equities turnover falls 5.81%
ROBIN PHIRI
Equities turnover on the Zimbabwe Stock Exchange (ZSE) fell by 5.81% in the first quarter of 2025, reflecting waning activity on the country’s main bourse as investors increasingly diversify into alternative assets.
According to the latest data from the Securities and Exchange Commission of Zimbabwe (SECZim), ZSE equities turnover stood at ZWG951.29m for the quarter ended 31 March 2025, down from ZWG1.01bn recorded in the previous quarter.
Market analysts say the decline in turnover reflects both global and domestic headwinds, including Zimbabwe’s ongoing economic challenges such as persistent inflation, foreign currency shortages, and subdued investor sentiment.
In contrast, the Financial Securities Exchange (FINSEC) — an alternative trading platform — registered growth during the same period. FINSEC trades rose by 5.07%, with total turnover reaching ZWG3.52 bn from 271 transactions. This positive performance signals growing investor interest in financial securities beyond the traditional stock exchange.
“During the quarter ended 31 March 2025, a total of 30,374 investors maintained active accounts on both C-Trade and ZSE Direct, marking a 10.45% increase from 27,500 active investors in the previous quarter,” SECZim stated. “The two platforms recorded Buy Trades worth ZWG4.24m and Sell Trades amounting to ZWG2.53m, reflecting heightened retail investor participation.”
Despite the decline in ZSE turnover, the broader capital market data shows a clear trend of portfolio diversification. Investor exposure to the stock market dropped significantly — from 40.53% in the third quarter of 2024 to 29.36% by the end of March 2025.
Conversely, investments in property increased from 47% to 48.45%, while allocations to money market instruments rose from 6.97% to 8.85%. Exposure to bonds also edged up from 6.37% to 6.62%.
Market analysts say this gradual shift away from equities towards lower-risk asset classes such as property, money market instruments, and bonds reflects growing caution among investors. Many are seeking stable returns and reduced exposure to market volatility in light of Zimbabwe’s economic environment.
“While the drop in ZSE equities turnover is concerning, the growth in FINSEC activity and increased uptake of direct market access platforms indicate that Zimbabwe’s capital markets are evolving rather than contracting,” an analyst at a local brokerage firm observed.
Over the past few years, the Zimbabwean government has introduced a series of measures aimed at stabilising the economy and encouraging investment. These include the reintroduction of the Zimbabwean dollar as the sole legal tender and the implementation of Monetary Policy Statements intended to curb inflation and stabilise the exchange rate.
Although these initiatives have had some success in stabilising parts of the economy, economists caution that more consistent policy measures, improved market confidence, and a favourable investment climate are still needed to attract meaningful domestic and foreign capital.
The decline in ZSE equities turnover highlights the fragile nature of investor confidence in the traditional stock market. However, the growth in FINSEC transactions and the notable increase in active investors on digital platforms such as C-Trade and ZSE Direct suggest that investor interest remains intact — albeit redirected towards more flexible and lower-risk investment channels.
As the market continues to evolve, analysts urge investors to stay informed, adopt diversified investment strategies, and remain agile in response to changing market conditions.
