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Senior Business Reporter
The country’s stock market recorded a 13 percent increase in listings in 2022 with officials saying the growth signifies more diversity.
Posting on his official Twitter handle today (Tuesday), the Zimbabwe Stock Exchange and Victoria Falls Stock Exchange chief executive officer, Mr Justin Bgoni said there was a steady growth in the last 12 months.
“In 2022, across ZSE and VFEX, there were 61 equities and five exchange Traded Fund (ETFs) ,one real investment trust (REIT) and one Bond giving a total of 68,” he said.
REITs are investment securities that enable the issuer to pool investors’ funds for the purpose of investing in real estate. In exchange, the investors receive units in the trust and as beneficiaries of the trust share profits from the real estate assets.
On the other hand, EFTS are professionally managed, pooled and listed investment funds.
The investment fund typically invests in a basket of shares, currencies, commodities, bonds or other securities and investors buy units from the fund, which units are listed on an exchange.
This makes an ETF a basic derivative as the value of the units issued by the investment fund are dependent on the value of the shares, currencies, commodities or other securities in the basket.
Experts say while ETF units are traded in the same manner as shares on an exchange, the difference is that ETF units track a basket of securities, a commodity or a currency whilst a share tracks a single company. ETFs units generally offer more diversification benefits compared to shares.
Added Mr Bgoni : “ In 2021, it was 59 equities and one ETF giving a total of 60.
However, he said since 2016, there had been no Initial Public Offering (IPO).
“There was no IPO in Zimbabwe since 2016. In 2021, there was an IPO on VFEX where $8 milion USD was raised. In 2022, there were two IPOs, one on ZSE where ZWL$6.8 billion was raised and a second one on VFEX where $32 million USD was raised.”
“So there was a 13 percent increase in listings in 2022 and more importantly there is more diversity.”
He said investing in the stock market is not about making money but taking control of one’s financial future.
Online Reporter