HARARE – The Zimbabwe Stock Exchange (ZSE) opened the week on a stronger footing, buoyed by gains in materials and industrial stocks, even as the US dollar-denominated Victoria Falls Stock Exchange (VFEX) recorded a marginal decline amid mixed trading across heavyweight counters.
The ZSE All Share Index rose 0.91 percent to close at 478.21 points on Monday, supported by selective buying in industrial and materials shares. The contrasting performance of the two exchanges highlighted differences in investor positioning and liquidity across Zimbabwe’s equity markets.
Trading on the ZSE remained relatively subdued, with 82 transactions generating ZWG3.61 million in turnover. Total market capitalisation stood at approximately ZWG110.6 billion.
The Top 10 Index advanced 0.95 percent, while the Top 15 Index gained 0.78 percent, reflecting positive sentiment among several of the market’s larger constituents.
Sector performance was more pronounced. The Materials Index surged 6.04 percent, while the New Industrial Index climbed 8.39 percent, offsetting a 0.82 percent decline in financial stocks.
National Printing and Packaging (NPKZ) emerged as the session’s strongest performer, gaining 14.43 percent. Building materials manufacturer Turnall (TURN) followed with a 12.65 percent increase, while ZSE Holdings (ZSEH) appreciated by 9.72 percent.
Losses were concentrated in selected counters, with sugar producer StarAfrica (SACL) retreating 10.17 percent and diversified insurance group Zimre Holdings (ZIMR) declining 6.25 percent. The Small Cap Index remained unchanged.
VFEX slips despite stronger trading turnover
The Victoria Falls Stock Exchange recorded a marginal decline of 0.05 percent, with several established counters weighing on the market’s performance.
Trading activity was comparatively stronger in value terms, with 246 transactions generating approximately US$653,000 in turnover. The exchange’s market capitalisation remained above US$9 billion.
Axia Corporation declined 2.23 percent, while Old Mutual shed 2.15 percent. Property investment vehicle Pfuma REIT retreated 2.06 percent, and gold producer Caledonia Mining Corporation eased 0.56 percent.
The trading session coincided with a series of corporate disclosures, including Kavango Resources’ announcement of a forthcoming general meeting and additional regulatory filings involving Caledonia Mining and Old Mutual.
Although these announcements formed part of the broader corporate reporting environment, there was no clear evidence that they directly influenced Monday’s share-price movements.
Currency preferences continue to shape market liquidity
The divergence between the two exchanges reflects the different investment considerations facing Zimbabwean equity investors.
The ZSE, where securities trade in Zimbabwe Gold (ZiG), remains sensitive to domestic liquidity conditions, inflation expectations and investor confidence in the local currency.
The VFEX, by contrast, offers US dollar-denominated securities, providing investors with exposure to corporate earnings and assets priced in hard currency.
However, Monday’s figures also illustrate the importance of distinguishing trading activity from market direction. Despite its modest decline, the VFEX recorded substantially higher turnover in US dollar terms, while the ZSE’s gains were concentrated in selected industrial and materials counters.
For investors, the underlying question remains whether improvements in monetary stability and domestic financial conditions can support more consistent liquidity across the local-currency market.
Zimbabwe’s ongoing currency stabilisation efforts, alongside the continued preference for US dollar assets, are likely to remain important influences on capital allocation between the two exchanges.
Monday’s performance suggests that selective opportunities remain on the ZSE, although sustained market gains will depend on broader participation, stronger corporate earnings and improved investor confidence.
