Tinaye Agere
Enacy Mapakame
The Zimbabwe Stock Exchange (ZSE) expects to expand its digital platforms in a move that will increase retail investor participation and efficiency in trading.
This comes as the bourse’s digital transformation journey has been continuing in the past financial year with platforms that have facilitated the ease of trading shares and increased retail participation on the platform.
According to the bourse, the ZSE Direct and VFEX Direct have seen a sustained increase in the number of active participants. The two are online platforms that allow investors to buy and sell shares on the stock exchanges and are accessible to all investors.
Their advantages include real-time market data, allowing investors to make informed decisions about when to buy and sell shares.
“We expect to expand the ZSE Direct and VFEX Direct through partnerships with banks and other market operators, which should result in increased usage of the platforms,” said ZSE chief executive officer Justin Bgoni.
According to the ZSE, the value of trade on ZSE Direct increased to $248,5 million in 2021 from $14,4 million in 2020. A mobile application version of ZSE Direct was also introduced for both iOS and Android users in 2021.
In September 2020, the bourse introduced the ZSE Direct to increase retail investors’ participation on the stock exchange and demystify the misconception that capital markets are elitist only.
On the Victoria Falls Stock Exchange (VFEX), the US dollar-denominated bourse launched the VFEX Direct web application and Android platforms in early 2022.
The VFEX Direct platform has assisted the VFEX to increase retail participation on the USD-denominated bourse.
“As at 31 December 2022, we had 1 000 active users on the platform,” said Mr Bgoni.
For years, the participation of retail investors on the capital markets has been limited compared to institutional investors. Since its launch, it has managed to make investments much easier for the retail market, while also boosting financial literacy and inclusion.
Meanwhile, bulls dominated trade during the month of June, with the ZSE total market capitalisation jumping by 56 percent to $14 trillion from $8,9 trillion by the close of May as excess liquidity found its way on to the stock market.
The primary index, the ZSE All Share Index, put on 58 percent to 171 911 points while market heavies, the ZSE Top 10 Index, jumped by 41 percent to 93 337 points.
Both the exchange traded funds (ETFs) and real estate investment trust (REIT) markets recorded gains during the month of June. The most pricey ETF — Morgan and Co Multi-sector ETF — more than doubled to $150,25 from $67,71.
The only listed REIT —Tigere — rose by 153 percent to $300.
However, the VFEX total market value recorded a 7 percent decline to US$1,032 billion. The US dollar-denominated exchange is expected to improve on liquidity as it continues to gain momentum and attract quality stocks.
Online Reporter