ZSE turnover surges 45%
STAFF WRITER
The Zimbabwe Stock Exchange (ZSE) recorded a 45% surge in market turnover to US$52.08 million for the second quarter ended June 30, 2025, from US$35.79 million in the first quarter, reflecting renewed investor confidence and improving liquidity in the local equities market.
According to the Securities and Exchange Commission of Zimbabwe (SecZim), the performance was largely driven by a US$9 million block trade in Econet Wireless Zimbabwe Limited, coupled with robust demand for blue-chip counters as investors sought value preservation amid persistent inflationary pressures.
“The market recorded improved activity during the quarter under review, largely buoyed by strong trades in Econet and Delta, which continue to attract institutional and retail investors,” SecZim said in its quarterly market update.
SecZim noted that the Industrial Index and Top 10 Index posted gains of 27% and 24% respectively, supported by firming prices in telecommunications, consumer goods, and banking stocks. The overall market capitalization increased to US$4.6 billion, from US$3.9 billion in the previous quarter.
Analysts said the sharp rebound reflected growing appetite for equities as a hedge against the depreciating local currency and uncertainty in alternative asset classes.
“The stock market has become a preferred safe haven for investors amid ongoing exchange rate volatility,” said an equities analyst with a local asset management firm. “Econet’s block deal was a catalyst, but we’re also seeing consistent inflows into quality stocks like Delta, Innscor and OK Zimbabwe.”
Increased foreign participation also supported liquidity, with foreign investor inflows rising 18% to US$11.4 million, while outflows moderated to US$9.2 million, narrowing the net foreign position gap.
However, SecZim cautioned that market stability remains sensitive to macroeconomic risks, including currency instability and inflation, which could erode value gains if not contained.
“The Commission continues to monitor developments closely and encourages market participants to adhere to prudential trading practices,” SecZim said.
On the Victoria Falls Stock Exchange (VFEX), turnover also improved modestly to US$4.1 million during the period, from US$3.7 million in the first quarter. The increase was attributed to sustained interest in VFEX-listed counters such as Padenga Holdings, Seed Co International, and Innscor Africa Limited, all of which continue to draw attention from investors seeking hard currency returns.
