HARARE — Zimbabwe’s stock markets moved in opposite directions on Monday, with the Victoria Falls Stock Exchange (VFEX) gaining 0.52% while the Zimbabwe Stock Exchange (ZSE) slipped 0.29%, as subdued liquidity continued to weigh on domestic equities.
The ZSE All Share Index closed at 473.90 points, with market capitalisation settling at ZiG109.60 billion. Turnover was a modest ZiG491,116.33 across just 46 trades, underscoring the limited depth of the local market.
Heavyweight counters came under pressure, with the Top 10 Index declining 0.67% and the Top 15 shedding 0.47%. The Financials Index lost 1.21%, reflecting weakness in banking shares.
CBZ Holdings fell 3.77% to 3,270 cents, while Dairibord retreated 2.89% to 588.50 cents. General Beltings eased 1.41%.
There were pockets of strength, however. Proplastics led the gainers with a 15% rise to 132.25 cents, followed by Star Africa Corporation, up 11.32%, and Zimre Holdings, which advanced 10.73%.
Meikles gained 7.98%, while Ariston added 4.93%. The Mid Cap Index rose 1.11%, suggesting investors were still finding opportunities beyond the market’s largest companies.
The Materials Index was another standout, climbing 3.99%, while consumer staples recorded modest gains.
VFEX attracts stronger trading interest
Trading was more active on the US-dollar-denominated VFEX, where 145 transactions generated turnover of US$455,865.38.
The VFEX All Share Index advanced 0.52% to 273.16 points, taking the exchange’s market capitalisation to US$9.09 billion.
TSL Limited led the gainers, jumping 14.71% to US$0.2409. FMWG advanced 5.22%, while Old Mutual rose 3.71% to US$0.9075.
Kavango Resources gained 2.23%, and Simbisa Brands closed 1.41% higher at US$0.6921.
The contrasting performances highlighted the different investment environments on Zimbabwe’s two exchanges. The ZSE operates in Zimbabwe Gold (ZiG), while the VFEX offers investors exposure to US-dollar-denominated securities.
The distinction matters in an economy where most commercial transactions remain dollarised, despite efforts to strengthen confidence in the domestic currency.
Liquidity remains the bigger concern
Beyond the daily movements, the ZSE’s exceptionally low turnover remains a concern.
Trading worth less than ZiG500,000 against a market valued at almost ZiG110 billion illustrates how little capital is changing hands.
Such conditions can exaggerate price movements and make it difficult for institutional investors to build or unwind substantial positions.
Zimbabwe’s improving monetary stability and continuing external debt-resolution efforts could eventually support investor confidence, particularly if progress reduces the country’s sovereign-risk premium and improves access to international credit.
But financial-market recovery will require more than stable exchange rates and rising share prices.
Domestic companies need affordable credit, deeper capital markets and stronger consumer demand to support investment and earnings growth.
The latest corporate announcements also kept investors alert. Meikles issued shareholder circulars and meeting notices, while Unifreight published a cautionary announcement.
On the VFEX, Invictus Energy reported progress on its Musuma-1 exploration programme, announcing the commencement of a rig move following completion of the wellpad.
The development adds to investor interest in Zimbabwe’s energy exploration prospects, although commercial outcomes remain dependent on drilling results.
For now, Monday’s session reflected a market still struggling to attract consistent liquidity, even as selected counters continued to reward investors.
The VFEX’s stronger showing offered some encouragement, but the broader test for Zimbabwe’s exchanges remains their ability to mobilise meaningful capital for productive investment.
