malvernmugadzikwa
Nelson Gahadza
The Victoria Falls Stock Exchange (VFEX) market capitalisation for the third quarter to September 30, 2024 increased by 6,56 percent to US$1,30 billion compared to US$1,27 billion during the same period last year largely driven by new listings.
In its third quarter newsletter, VFEX said it onboarded its 16th listing on the bourse, Invictus Energy’s depository receipts, which listed on August 2, 2024.VFEX is a subsidiary of the Zimbabwe Stock Exchange (ZSE) established to kick-start the Offshore Financial Services Centre (OFSC)earmarked for the special economic zone in Victoria Falls.
During the quarter under review, VFEX recorded a 20,22 percent increase in total market turnover from US$$6,48 million in 2023 to US$$7,92 million in the third quarter of 2024 compared to the same period last year.
“There was a notable increase in trading activity in Q3 compared to Q2 2024.
The number of trades executed went up by 10.11 percent, indicating a relatively more active quarter,” reads part of the newsletter.
The VFEX All Share Index closed at 105,63 points, showing an increase of 5,63 percent since January 2024.
The average dematerialisation ratio for the counters on the VFEX depository as of September 30 2024 was 63,86 percent. According to the newsletter, VFEX depository clearing follows a T+3 settlement cycle.
The number of settled trades also increased by 10,11percent in the third quarter of 2024 showing that the rise in trading activity was accompanied by a successful settlement of trades.
The total value traded on the VFEX declined by 22,64 percent in the third quarter of 2024 and this indicates that even though there was more buying and selling activity, the size of the individual trades decreased on average.
VFEX said following the launch of the Bond Market Association of Zimbabwe (BMAZ) on 09 April 2024, the BMAZ and the Botswana Bond Market Association (BBMA) have signed a Memorandum of Understanding (MoU) to strengthen collaboration and enhance the capacity and capabilities of each organisation to contribute to the development of bond markets in the two countries.
“The key objectives of the MoU are to facilitate information sharing including research findings, market insights, best practices and regulatory frameworks, and to promote peer learning through mutual capacity building activities and other collaborative initiatives,” VFEX said.
During the quarter under review, VFEX said it published the Securities and Exchange licensing of minerals commodities trading participants on the Victoria Falls Stock Exchange Rules, SI 148 of 2024. It also published the Securities and Exchange Victoria Falls Stock Exchange Mineral Commodities Rules, SI 149 of 2024. VFEX said the next steps include recruitment of participants, acquisition and financing of the system.
Bongani Ndlovu