Online Reporter
Nelson Gahadza
Senior Business Reporter
THE Victoria Falls Stock Exchange (VFEX) recorded significant month-on-month growth in its Real Estate Investment Trust (REIT) and Exchange Traded Fund (ETF) segments in June, reflecting increased investor participation and rising confidence in alternative investment products on the dollar-denominated bourse.
The latest VFEX market statistics show that REITs continued to dominate the alternative investment segment, posting strong gains in trading volumes, turnover and the number of trades compared to May.
ETFs also registered impressive growth, underscoring increasing investor appetite for diversified investment instruments.
REITs are collective investment vehicles that enable investors to own income-generating property assets without directly purchasing real estate. At the same time, ETFs are pooled investment funds that track a basket of securities or commodities and trade on the stock exchange like ordinary shares.
According to the latest statistics, the REITs traded 7 859 863 units in June, more than tripling the 2 466 789 units exchanged in May.
Turnover surged to US$2.705 million from US$355 035 recorded the previous month, marking one of the strongest monthly performances since REITs were introduced on the exchange.
The number of trades also rose to 387 in June from 295 in May, indicating not only larger transaction volumes but also broader investor participation.
Despite the strong growth in trading activity, the REITs sector’s market capitalisation declined slightly to US$120.38 million at the end of June from US$126.28 million in May, suggesting that price movements offset some of the gains recorded in trading.
No foreign purchases or foreign sales were recorded in the REIT market during the period under review, indicating that trading activity remained largely driven by domestic investors.
The VFEX currently hosts REITs that include the Tigere Property Fund and Eagle Real Estate Investment Trust, which provide access to Zimbabwe’s commercial property sector and broaden the range of investment opportunities available on the exchange and create additional avenues for mobilising long-term capital for property development.
The ETF segment also posted strong month-on-month growth.
Trading volume increased to 4 958 751 units in June from 386 865 units in May, reflecting a significant rise in investor demand.
Turnover climbed to US$650 779.07 during the month from US$54 273.77 recorded in May, while the number of trades rose to 198 from 79 over the same period.
