daniel chigunwe
Business Writer
Equities research and stock broking firm, IH Securities, says activity on the Victoria Falls Stock Exchange (VFEX) has remained steady, with a slew of new listings in the year.
In its year-to-date equity review strategy report, IH said whilst liquidity on the bourse has been an area of concern since inception, YTD average daily value traded to the 28th of October increased 84 percent to US$0.16 million from US$0.09 million in the comparable period.
“The pipeline of counters migrating to the VFEX remains steady, with the bourse aiming to secure four additional listings by the end of the year, with the most recent announcement of intent to list coming from mineral exploration company Kavango Resources,” IH said.
It added that the exchange is also planning to launch the Commodities Exchange in Q4 and the rules governing its operation have been finalised.
“The commodities exchange is expected to boost market liquidity in addition to diversifying investment options,” reads the report.
Retailer Edgars, migrated its listing from the ZSE in the third quarter of 2024, and the offshore financial services centre also welcomed the listing of Invictus Energy depository receipts as the 16th listing on the bourse.
“Additionally, contracts for differences were also launched on the exchange,” said IH Securities.
Year to date, IH said heavyweight Innscor saw shares worth US$12.92 million trade hands, while Simbisa followed at US$8.51 million.
However, Zimplow led in aggregate volumes traded at 94.04 million, while African Sun came in second with 52.98 million shares.
First Capital Bank led in performance at 145 percent growth, while National Foods and Edgars share prices appreciated by 31 percent and 22 percent, respectively. Zimplow was the worst performer, declining 65 percent in the year-to-date period.
In its report, IH said Innscor will see revenue growth of 18.9 percent in the current year to US$955.69 million, supported by volumes.
“We anticipate EBITDA margin to increase by a marginal 1 basis point to 9.5 percent on account of a gradual improvement in efficiencies,” IH said.
IH said in FY24, the group saw positive volume growth across the core segments of the business.
In the bakery segment, bakery volumes improved 12 percent, supported by additional capacity and stable flour pricing, amongst other factors.
Net interest charge reduced 31 percent year on year to US$9.24 million on restructuring of borrowings, while earnings from associate companies saw a 190 percent increase to US$4.99 million.
Bongani Ndlovu