Chronicle Editor
Judith Phiri, Business Reporter
THE Victoria Falls Stock Exchange (VFEX) registered US$10,07 million market turnover in the second quarter of 2024, representing a 52,4 percent increase from the same period last year.
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.
Since its establishment in October 2020, the US dollar-denominated exchange has seen listings from various sectors such as mining, financial services, tourism, hospitality and clothing.
The bourse provides extended options for capital raising, including debt listing in foreign currency and has been said to offer several incentives and trading advantages compared to the ZSE, which has been the pull factor for listings on the VFEX.
According to the latest VFEX newsletter, the US$10,07 million turnover recorded in the second quarter of 2024 (Q2 2024) was 52,4 percent higher than the US$6,61 million recorded in Q2 2023.
“The number of companies listed in Q2 2024 increased by 15,38 percent to 15 from 13 in Q2 2023. The VFEX All Share index was rebased to 100 points on 1 January 2024. The number of trades increased by 35,78 percent between Q2 2023 and Q2 2024.”
It said in Q2 2024, Edgars Stores Limited, a manufacturer and retailer of clothing was listed on VFEX.
The Contract for Differences (CFDs) were officially launched by the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube and started trading on the VFEX effective 13 May 2024.
The bourse said: “The VFEX All Share Index closed at 102,69 points, showing an increase of 2,69 percent since its rebasement in January 2024. Q2 2024 recorded 6,39 percent in the number of trades compared to Q1 2024 indicating a sustainable increase in trading activity. During the second quarter of 2024, the market capitalisation gained by 2,46 percent to close at US$1,25 billion.”
The VFEX said it collaborated with other market players to establish the Bond Market Association of Zimbabwe (BMAZ) which was launched in Q2 2024 in Bulawayo.
It said the launch coincided with a two-day fixed income conference, while the rationale behind the creation of BMAZ was to create an independent association in Zimbabwe that will be instrumental in fostering market development.
“BMAZ will also advocate for industry interests, enhance market transparency and integrity as well as promote investor confidence and participation. The association is expected to be a key player in fostering the growth of the local capital market which could lead to increased investment opportunities and potentially more stability in the Zimbabwean financial sector,” said the US dollar-denominated exchange.
In the outlook, VFEX said the first-half of the year went on positively for the bourse as they continue to experience steady growth as their market is performing well as shown by the statistics.
It said the VFEX Direct platform also continues to thrive as more and more investors leverage its convenience.
“We are actively exploring adding new security types to the exchange soon. This more comprehensive selection will give the investor more diversity to build a strong and well-rounded portfolio. VFEX is creating a commodities exchange to provide an even broader range of investment opportunities for the investors,” said the bourse.
In terms of the commodities exchange, VFEX said the commodities rules await gazetting by the Ministry of Finance, Economic Development and Investment Promotion.
It said all key personnel for the Commodities Exchange, within the VFEX, have been assembled and are currently developing process flows and other procedures necessary for the Commodities Exchange.
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