Stock markets see continued weakness amid liquidity challenges 

Tapiwanashe Mangwiro

The Zimbabwe Stock Exchange (ZSE) and the Victoria Falls Stock Exchange (VFEX) remained under pressure last week, reflecting broader economic challenges and constrained liquidity.

Platinum Securities’ weekly outlook suggests that trading volumes are likely to remain low, with activity centred around select blue-chip counters such as Delta and Econet.

On the VFEX, subdued trading is expected to persist due to competition from other USD-denominated assets and limited foreign investor participation.

The ZSE’s All Share Index declined by 0,48 percent to 188.48, while the Top 10 Index dropped 0,49 percent to 184.76.

The broader market remains in negative territory, with a year-to-date (YTD) decline of 12,98 percent.

Liquidity constraints and investor caution have driven weaker sentiment, with significant losses recorded across multiple sectors.

The VFEX also mirrored this trend, with its All Share Index slipping 0,37 percent to 102.13, reflecting a 12,36 percent YTD loss. Trading volumes remained modest, with only US$52,770.92 in total value exchanged during the session.

Among the top gainers, SeedCo advanced 1,59 percent, followed by Ariston which was up 1,01 percent and Econet added 0,84 percent. Starafricacorporation posted a modest 0,46percent gain, while Delta edged up 0,02 percent.

Conversely, Ecocash was the biggest loser, tumbling 9,74 percent. BAT also declined sharply by 4,41 percent, while Mash Holdings fell 3,18 percent and First Mutual Properties dropped 2,97 percent. RioZim was down 0,83 percent, extending its recent downward trajectory.

Despite the weak sentiment, Delta led the value traded chart with ZiG 2,19 million, followed by BAT at ZiG 1,64 million.

Econet also saw meaningful activity, trading ZiG 259 390, while SeedCo and Masimba posted ZiG 230 555 and ZiG 202 941, respectively.

In its FY 2025 results, Nampak Zimbabwe reported a 7percent revenue decline to US$101,28 million. The company’s bottom line took a major hit, with profit after tax (PAT) plunging 49 percent to US$1,74 million. However, Mega Pak, one of Nampak’s subsidiaries, posted a 10,2percent growth in volumes, contributing positively to the group’s topline.

With liquidity constraints persisting and the economic environment remaining tough, market activity is expected to stay concentrated in a few large-cap stocks.

Investors will be closely monitoring corporate earnings releases and broader macroeconomic developments for potential market direction.