Online Reporter
Nelson Gahadza, [email protected]
THE Victoria Falls Stock Exchange (VFEX) market capitalisation almost doubled to US$8,12 billion in August following the listing of Old Mutual, underlining growing investor appetite for large hard-currency counters despite a decline in the exchange’s benchmark index.
According to the IH Securities August 2026 Monthly Snapshot, VFEX market capitalisation rose 95,15 percent during the month, taking year-to-date growth to 263,04 percent.
The sharp increase was largely driven by the addition of Old Mutual to the bourse on August 12, 2026, rather than broad-based gains in share prices.
In contrast, the VFEX All Share Index fell 1,75 percent during the month to close at 258,90, indicating weaker underlying price performance even as the exchange’s overall value expanded significantly.
Old Mutual quickly emerged as a major contributor to trading activity following its listing, with shares worth US$1,89 million changing hands during the month.
According to IH Securities, the counter ranked third among the exchange’s largest value contributors, behind Padenga, which recorded US$2,79 million, and Caledonia at US$2,55 million.
In volume terms, Old Mutual recorded 2,17 million shares traded, ranking third behind Econet Infraco’s 6,65 million shares and Seed Co International’s 3,72 million.
IH Securities said the strong trading activity reflected pent-up demand for quality United States dollar-denominated securities and reinforced VFEX’s position as the preferred market for large and dual-listed companies.
“In our view, the Old Mutual listing is a strong endorsement of the VFEX as the natural home for large, dual-listed and hard-currency counters,” the brokerage said.
The listing comes as VFEX continues to position itself as an attractive US dollar-denominated equities market, with the exchange targeting further growth in market capitalisation.
However, the brokerage cautioned that the decline in the All Share Index showed the surge in market value was not supported by broad-based share price gains.
“Though the index decline is a reminder that broader price performance remains soft and liquidity is still concentrated in a handful of counters,” IH Securities said.
According to IH Securities, Seed Co International was the top performer on VFEX during the month under review, gaining 27,32 percent, followed by Zimplow, which rose 11,55 percent, and FCB, which advanced 6,91 percent.
The gains were offset by losses in Eagle REIT, which fell 16,86 percent, TSL, which dropped 13,79 percent, and the First Mutual Gold ETF, which shed 13,53 percent. Nedbank Zimbabwe and Padenga declined 11,53 percent and 10,64 percent respectively.
IH Securities said the performance on the VFEX contrasted with developments on the Zimbabwe Stock Exchange (ZSE), which also ended the month in negative territory, although the decline was relatively modest.
The brokerage said ZSE market capitalisation eased 0,87 percent to ZiG105,19 billion, leaving the market 13,41 percent higher year-to-date.
The All Share Index fell 0,71 percent to 477,39, while the Top 10 Index declined 1,39 percent to 480,09 as weakness in heavyweight counters weighed on the broader market.
During the month under review, ZSE Holdings was the best-performing stock, surging 114,81 percent in nominal terms, while Willdale gained 40 percent and Cass Saddle ETF advanced 34,66 percent.
IH Securities said trading on the ZSE was dominated by a major block transaction in CBZ involving the Public Service Pension Fund (PSPF).
CBZ recorded ZiG2,67 billion in value traded, with ZiG2,58 billion of that amount arising from a single transaction involving 62,3 million shares at ZiG39,99. The deal saw PSPF acquire an 11,91 percent stake, increasing its shareholding in the banking group to 21,67 percent.
IH Securities said the transaction was the defining market event of the month and signalled growing pension fund interest in listed financial institutions.
At approximately US$100 million, the transaction dwarfed other activity on the ZSE and accounted for the bulk of the month’s turnover, highlighting the continued concentration of liquidity in large block trades.
The brokerage described August as a pause in the ZSE’s 2026 rally rather than a reversal, with weakness in heavyweight counters dragging indices lower while retail-driven demand supported smaller stocks, exchange-traded funds and real estate investment trusts.
According to IH Securities, the broader economic environment remained relatively stable during the month. The ZiG maintained its value against the US dollar, with the interbank rate closing at ZiG26,67 to US$1 compared with ZiG26,68 at the end of July.
Annual ZiG inflation eased to 2,9 percent from 3,2 percent in July, while month-on-month ZiG inflation remained unchanged at 0,1 percent. US dollar month-on-month inflation fell to zero from 0,3 percent.
