Online Reporter
Nelson Gahadza
ZIMBABWE’S capital markets extended their positive run in July, with the Zimbabwe Stock Exchange (ZSE) recording strong gains across its major equity indices and a significant increase in trading activity, while the Victoria Falls Stock Exchange (VFEX) continued to expand its market capitalisation and attract investor participation.
The performance reinforced growing optimism across the country’s securities markets, with the ZSE benefitting from improving domestic market conditions and the VFEX consolidating its position as a United States dollar-denominated investment platform.
According to figures from ZSE Holdings, the ZSE All-Share Index rose by 15,1 percent to 480,81 points in July, from 417,81 points in June, while the Top 10 Index advanced by a similar 15 percent to 486,86 points from 423,32 points.
On the VFEX, the All-Share Index increased by 3,7 percent to 263,50 points from 254,12 points, while the exchange’s equity market capitalisation climbed 6,1 percent to US$4,12 billion from US$3,89 billion.
According to FBC Securities’ July 2026 capital markets review, Zimbabwe’s equity market maintained its positive momentum during the month, with the ZSE ranking among Africa’s stronger-performing equity markets.
“Market performance continued to benefit from declining inflation, relative exchange rate stability and improved domestic investor participation,” reads the report in part.
The improved performance was also reflected in trading activity on the ZSE, with equity turnover increasing by 73,8 percent to ZiG530,6 million in July from ZiG305,2 million in June, while volumes rose by 29,3 percent to 76,6 million shares.
The number of trades increased by 3,5 percent to 2,521 from 2,436 in June.
The stronger activity was accompanied by an expansion in ZSE equity market capitalisation, which rose by 11,6 percent to about ZiG107,7 billion from ZiG96,6 billion.
Foreign participation improved, with foreign purchases rising by 34,4 percent to ZiG87,7 million, while foreign sales increased by 29 percent to ZiG112 million.
Investment analyst Mr Enock Rukarwa said the ZSE’s performance continued to be driven largely by a relatively small number of quality counters, particularly Delta Corporation and Tigere REIT, amid the migration of major companies to the VFEX.
He said investors were increasingly directing capital towards counters with visible value propositions, sustainable dividend payments and clearly traceable business models.
Mr Rukarwa pointed to significant rallies in counters such as Tanganda, CBZ Holdings and Dairibord, which he attributed largely to corporate transactions and developments involving the companies.
“The ZSE market continues to be dominated by predominantly two counters, and this is Delta and Tigere,” he said, adding that the migration of companies to the VFEX had created limitations in terms of the quality of counters available on the ZSE.
He said the situation was encouraging investors to focus on companies capable of delivering consistent value to shareholders.
According to IH Securities, TN CyberTech was the best-performing counter during the month, with its share price rising by 92,87 percent in nominal terms to ZiG0,3278.
Dairibord followed with a 75,45 percent gain to ZiG5,7022, while heavyweight CBZ Holdings advanced 51,04 percent to ZiG40,440.
Dairibord’s strong performance came amid news of a potential acquisition by Varun Beverages, while CBZ remained one of the market’s major blue-chip counters.
In terms of value traded, Delta Corporation was the largest contributor at ZiG214,03 million, followed by CBZ Holdings at ZiG164,16 million, Dairibord at ZiG87,22 million and Tigere REIT at ZiG60,12 million.
Trading volumes painted a different picture, with Tigere REIT leading at 54,71 million shares, followed by FMP at 39,49 million shares and Dairibord at 14,97 million shares, highlighting strong activity in REITs and mid-cap counters.
IH Securities said one of the major developments during the month was Dairibord’s cautionary announcement, which pointed to potential changes in the company’s ownership structure.
Shareholders controlling more than 51 percent of Dairibord are reportedly in discussions to sell a controlling interest of the business, with Varun Beverages reported to be the front-runner in a potential deal valued at about US$80 million.
IH Securities said the transaction suggested that strategic investors were willing to pay significantly more for Zimbabwean consumer businesses than their valuations on the local market implied, potentially providing a positive re-rating signal for other mid-sized counters.
The ZSE’s broader product offering also recorded encouraging developments during the month, consistent with the exchange’s strategy of diversifying investment products and broadening opportunities for investors.
ZSE chief executive officer Mr Justin Bgoni, in a recent interview, said the exchange was seeking listings across different asset classes as it continues to diversify its product offering.
“Our focus is on product diversification and ensuring that we get more listings not just from equities, but also from real estate investment trusts and exchange-traded funds. This year we managed to witness the second REIT listing and the first ETF,” he said.
On the VFEX, the July figures pointed to a market steadily increasing in depth despite a decline in equity turnover.
Equity turnover fell by 29,5 percent to US$14,2 million from US$20,1 million in June.
However, volumes increased by 10,1 percent to 31,7 million shares, while the number of trades rose by 6,5 percent to 3 600 from 3 379.
According to IH Securities, Padenga was the best-performing VFEX counter, with its share price rising by 28,44 percent to US145,00 cents, followed by Nedbank Zimbabwe, which gained 26,92 percent to US1 650 cents, and Seed Co International, which advanced 14,62 percent to US$3,50.
Padenga dominated trading by value, accounting for US$7,68 million during the month, while Innscor Africa followed with US$2,52 million in value traded.
By volume, FCB Holdings led with 6,41 million shares, followed by Padenga at 6,39 million and Econet InfraCo at 6,04 million shares.
Mr Rukarwa said trading on the VFEX remained concentrated around quality counters, particularly companies within the Innscor group, Padenga, Simbisa and First Capital.
He said these counters continued to attract investor attention because of their strong financial performance, traceable business models and ability to create shareholder value.
“The Innscor group continues to dominate tradability on that bourse. Volumes remain concentrated around Innscor, Padenga, Simbisa and, to some extent, First Capital,” he said.
He said the migration of Old Mutual Limited to the VFEX could help broaden the distribution of investment capital and introduce greater competition among leading counters.
“We believe that the coming in of Old Mutual is going to excite investors and also create some competition, especially with the Innscor group,” said Mr Rukarwa.
“So, we may see investment allocation being spread on a relatively broader spectrum.”
IH Securities said the more significant development for the VFEX was the pipeline of companies seeking to join the market rather than short-term price movements.
Old Mutual Limited has since migrated its listing from the ZSE to the VFEX, while Dairibord could also follow developments that would add significant depth to a market currently comprising 21 companies.
The broker noted that the combined value of VFEX counters had already risen by 82,03 percent since the beginning of the year, a performance it said had outpaced both company earnings and trading volumes.
“New listings should make it easier to buy and sell, but the extra supply of shares will also hold prices back in the near term,” IH Securities said.
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube recently said the Government was considering measures to make the ZSE more competitive, including a review of listing rules and regulations, and the cost of doing business on the exchange.
“An issue that we need to deal with on the ZSE is just the cost of doing business within the ZSE,” he said.
“I have asked management to come back to me with proposals so that those costs can be lower, so it becomes a competitive exchange.”
Prof Ncube said the Government did not regard the VFEX as a replacement for the ZSE, but rather as a complementary platform serving a different segment of the market.
“The VFEX’s primary job is to attract foreign direct investment, making use of the VFEX financial services centre, especially economic zone status, to attract foreign direct investment. That’s not immediately available on the ZSE platform,” he said.
FBC Securities said the migration of major companies to the VFEX was expected to materially enhance the exchange’s depth and attractiveness by increasing market capitalisation, improving liquidity and price discovery, broadening investment opportunities and strengthening its appeal to both domestic and international investors.
