THE Zimbabwe Stock Exchange (ZSE) maintained its upward momentum in July, with market capitalisation climbing 5% month-on-month, following a 2% rise in June.
The bourse closed the month with 18 gainers outpacing 13 losers, while monthly turnover surged to ZiG771 million, up from ZiG532 million in June, according to a report by Fincent Securities.
Telecom giant Econet dominated trading activity, recording ZiG274 million in turnover, followed by FBC at ZiG125 million. This marked a shift from June’s figures, where Delta and Econet led with ZiG212 million and ZiG116 million, respectively.
The dollar-denominated Victoria Falls Stock Exchange (VFEX) also ended July in positive territory, with market capitalisation jumping 15% after a marginal 0,02% dip in June. Six stocks advanced while only two declined.
However, trading activity weakened, with monthly turnover dropping 41% to US$4,3 million from US$7,2 million in June.
On the ZSE, SeedCo emerged as the top gainer, skyrocketing 58,38%, while OK Zimbabwe suffered the steepest decline, plunging 30,09%.
On the VFEX, Padenga led the advancers, whereas Edgars was the worst performer, shedding 14,18% of its value.
Fincent Securities analysts noted that Zimbabwean equities remain undervalued, with many major counters trading below historical averages.
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“We believe equities…will gradually reprice as witnessed on the VFEX,” the report stated, adding that many major counters were presenting “attractive buying opportunities” for investors.
The sustained rally on both exchanges suggests growing investor confidence, though liquidity challenges on the VFEX highlight lingering caution in the dollarised market. According to the 2025 Mid-Term Monetary Policy Statement, the ZSE exhibited bearish sentiments during the first half of 2025, reflecting continued market correction following the tightening of monetary policy during the fourth quarter of 2024.
In line with developments on the local bourse, market capitalisation declined from ZiG66,2 billion in December 2024 to ZiG60,97 billion as at June 2025.
The VFEX traded on a negative trajectory during the second quarter of 2025. As a result, the VFEX All Share index lost 2,82% to close at 107,21 points, from 110,32 points recorded in the quarter ending March 2025.
ZSE Holdings chief executive officer Justin Bgoni told businessdigest last week that the bourse has been struggling with currency and inflation volatility.
“When there is hyperinflation, it limits the product that you can bring on the market. So, for example, you expect debt to be a big part of your market, but when inflation is high, people will not invest in debt products,” he said.
“In terms of taxes and everything, the government has been better for us. They have lowered their taxes quite a bit."
- Exchange rate as at June 30: US$1:ZiG26,95.
- Exchange rate as at July 31: US$1:ZiG26,79.
