HARARE — Zimbabwean equities extended their upward momentum on Friday, with the Zimbabwe Stock Exchange (ZSE) All Share Index gaining 1.33 percent as financial counters drove a broad-based recovery in market valuations.
Trading activity strengthened, with 47 trades generating turnover of ZWG16.13 million, while total market capitalisation increased to ZWG106.31 billion.
The ZSE Top 10 Index was among the strongest performers, advancing 1.79 percent to 480.37 points, while the Top 15 Index gained 1.64 percent to 492.14 points. The Small Cap Index was unchanged at 100.11 points, highlighting the continued divergence between larger, more liquid counters and the smaller end of the market.
The Mid Cap Index, however, fell 0.69 percent to 485.29 points.
Financial stocks take the lead
The strongest sectoral performance came from financials, with the Financials Index rising 4.70 percent to 517.72 points.
CBZ Holdings was the standout among the major financial counters, climbing 9.04 percent to 3,707.51 cents. ZSE Holdings gained 13.51 percent to 210 cents, while TNCI advanced 5.77 percent to 29.64 cents.
SACL was the day’s biggest gainer, rising 13.96 percent to 3.70 cents.
At the other end of the market, Delta Corporation declined marginally by 0.11 percent to 3,240.89 cents, while RTG fell 3.10 percent to 159.84 cents.
Dairibord Holdings was the biggest decliner, falling 14.68 percent to 418.09 cents, in a sharp reversal that made the counter the principal drag on market sentiment.
Property counters attract renewed interest
The listed property segment also produced a notable move, with Tigere Property Fund gaining 9.21 percent to 119.65 cents and taking its market capitalisation to approximately ZWG2.2 billion.
The performance comes as investors increasingly assess listed property as an alternative store of value amid Zimbabwe’s evolving monetary environment and the continued search for assets capable of preserving purchasing power.
Revitus Property Fund was unchanged at 198.25 cents, with a market capitalisation of about ZWG730.2 million.
Investors remain selective
Market analysts told The Zimbabwe Financial Mail that Friday’s performance should be viewed less as a wholesale return of speculative buying and more as evidence of increasingly selective positioning by investors.
One market analyst said the concentration of gains in financial and larger counters reflected investors’ preference for companies with stronger balance sheets, liquidity and clearer earnings visibility.
“The market is increasingly rewarding counters where investors can see earnings growth and liquidity rather than simply chasing price momentum,” the analyst said.
Another analyst said the divergence between the major indices and the Small Cap Index remained significant, suggesting that the rally had yet to broaden sufficiently across the market.
“The fact that the Small Cap Index remains flat tells you that this is still a selective market. Investors are gravitating towards counters where they believe there is a credible fundamental story,” the analyst said.
The analysts noted that liquidity remains one of the central considerations shaping investor behaviour on the ZSE, particularly as investors assess the implications of corporate restructuring, delistings and the continuing development of Zimbabwe’s capital-market architecture.
Earlier market analysis has similarly pointed to growing investor preference for blue-chip counters as investors seek to reduce liquidity risk. Morgan & Co has argued that limited investment alternatives could continue directing flows towards larger counters, while analysts have highlighted the relative attractiveness of highly liquid companies on both the ZSE and Victoria Falls Stock Exchange.
Market capitalisation crosses ZWG106 billion
The increase in total market capitalisation to ZWG106.31 billion represents another indication of the upward re-rating taking place across Zimbabwe’s equity market.
However, the relatively modest number of trades compared with the scale of market capitalisation continues to underline the market’s structural liquidity constraints.
Analysts said sustained gains would ultimately depend on whether higher valuations are supported by corporate earnings, dividend capacity and deeper participation from institutional and retail investors.
“The important question now is whether the market can convert this price momentum into sustained liquidity and fundamental value creation,” one analyst said.
The latest session also came against a backdrop of continued corporate disclosures, with Cafca, National Foods and Hippo Valley releasing trading updates and Seed Co publishing its annual report and AGM notice.
For investors, the combination of stronger corporate earnings, improving monetary conditions and expanding capital-market infrastructure is creating a more constructive backdrop. But analysts cautioned that the market remains highly sensitive to liquidity, policy developments and the ability of listed companies to translate nominal earnings growth into real shareholder returns.
The ZSE’s recent performance therefore points to a market becoming more selective rather than uniformly bullish, with financials, property and other liquid counters emerging as the principal beneficiaries of renewed investor appetite.
