Online Reporter
Business Reporter
Local capital markets showed mixed performance in May, with the Zimbabwe Stock Exchange (ZSE) posting marginal gains while the Victoria Falls Stock Exchange (VFEX) retreated.
The ZSE ended the month stronger in nominal terms, though real USD gains remained flat, while the VFEX grappled with a market-wide lull and profit-taking on key stocks.
According to IH Securities, the ZSE’s market capitalisation climbed 2,69 percent to ZiG59,64 billion in May from ZiG58,08 billion in April.
The All-Share Index mirrored this trajectory, gaining 2,55 percent, while the Top-10 Index lagged slightly behind with a 2,33 percent rise.
In US dollar terms, however, market capitalisation hovered at US$1,66 billion, showing no real growth due to exchange rate effects.
GB Holdings and starafrica emerged as the top performers on the ZSE in May, with share price increases of 66,01 percent and 65,14 percent respectively. On the downside, Art Corporation suffered the most, losing 49,94 percent month-on-month.
Trading activity surged significantly during the period. Volumes jumped 79,18 percent to 270,04 million shares, buoyed by a large block trade in Econet Wireless Zimbabwe, which alone accounted for 139,23 million shares, including a notable 97,69 million share transaction.
Ecocash Holdings followed with 46,44 million shares traded.
Value traded on the ZSE rose sharply by 124,18 percent in nominal terms to ZiG601,39 million. In real terms, average daily value traded increased by 120,31 percent from US$0,37 million in April to US$0,82 million in May.
Delta Corporation and Econet continued to dominate the value leaderboard for the month.
“Performance on the ZSE is still largely driven by money supply dynamics,” said IH Securities in a report. “In this delicate monetary environment with potential policy shifts, we favour agile companies that can navigate uncertainty, and in the absence of capital gains, consistent dividend payers remain attractive.”
In contrast, the VFEX recorded a 5,93 percent decline in market capitalisation to US$1,37 billion in May, while the All-Share Index dropped 6,48 percent over the month. The decline was largely attributed to a broadly subdued market where the majority of counters remained flat or lost value.
Axia Corporation bucked the trend, rising 18 percent to become the top performer on VFEX, while Padenga Holdings declined by 29 percent, reversing some of its earlier gains as investors cashed in profits.
Market activity on VFEX softened, with total value traded slipping 3,09 percent to US$3,74 million and volumes falling 3,89 percent to 25,34 million shares. Innscor Africa led in terms of value traded, recording US$1,07 million, while Axia was the volume leader with 10,24 million shares exchanged.
Despite the tepid performance, May marked a key development for the VFEX with the launch of the Eagle Real Estate Investment Trust (REIT). More listings are expected in the coming months, with Tanganda’s Class A shares and the Pfuma REIT reportedly under consideration.
“While pricing on the VFEX remains relatively stable, the absence of capital appreciation steers our focus towards defensive stocks, particularly those with robust dividend policies,” IH Securities noted in their monthly market wrap.
Looking ahead, investor sentiment across both bourses remains closely tied to policy direction, liquidity conditions, and the pace of new listings. On the ZSE, the hunt for value is likely to hinge on dividend resilience and operational agility.
Meanwhile, the VFEX is expected to gain traction through product diversification, including REITs and structured instruments, as it carves out its niche in the foreign currency investment space.
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