ZSE extend gains
STAFF WRITER
The Zimbabwe Stock Exchange (ZSE) maintained its upward momentum in July, with market capitalisation rising 5% month-on-month following a 2% increase in June.
The bourse closed the month with 18 gainers outpacing 13 losers, while monthly turnover surged to ZWG771m, up from ZWG532m in June, according to a report by Fincent Securities. Telecom giant Econet led trading activity, recording ZWG274m in turnover, followed by FBC at ZWG125m. This marks a shift from June, when Delta and Econet dominated trading with ZWG212m and ZWG116m, respectively.
The US dollar-denominated Victoria Falls Stock Exchange (VFEX) also posted strong gains, with market capitalisation jumping 15% after a marginal 0.02% dip in June. Six stocks advanced while only two declined.
However, trading activity fell sharply, with monthly turnover dropping 41% to US$4.3m from US$7.2m in June.
On the ZSE, SeedCo emerged as the top gainer, surging 58.38%, while OK Zimbabwe recorded the steepest decline, plunging 30.09%. On the VFEX, Padenga led the advancers, whereas Edgars fell 14.18%.
Analysts at Fincent Securities said Zimbabwean equities remain undervalued, with many major counters trading below historical averages. “We believe equities will gradually reprice as witnessed on the VFEX,” the report stated, adding that several major counters present “attractive buying opportunities” for investors.
The sustained rally across both exchanges reflects growing investor confidence, though liquidity challenges on the VFEX highlight lingering caution in the dollarised market.
The 2025 Mid-Term Monetary Policy Statement noted that the ZSE experienced bearish sentiment during the first half of the year, reflecting a continued market correction following monetary policy tightening in late 2024.
Market capitalisation declined from ZiG66.2 billion in December 2024 to ZWG60.97 bn as at June 2025.
ZSE Holdings Chief Executive Officer Justin Bgoni said that the bourse continues to navigate currency and inflation volatility.
“When there is hyperinflation, it limits the products you can bring to the market.
For example, you expect debt to be a big part of your market, but when inflation is high, people will not invest in debt products,” he said.
“In terms of taxes and everything, the government has been better for us. They have lowered their taxes quite a bit.”
