Zimbabwe Stock Exchange Poised for Growth in 2025 Despite Challenges
TLDR
- The Zimbabwe Stock Exchange (ZSE) is projected to see gradual growth in 2025
- This follows a challenging December 2024, where total market capitalization fell by 18%
- Meanwhile, the Victoria Falls Stock Exchange (VFEX) showed resilience, with market capitalization gaining 1.84%
The Zimbabwe Stock Exchange (ZSE) is projected to see gradual growth in 2025, driven by improving liquidity and investor demand for undervalued stocks.
This follows a challenging December 2024, where total market capitalization fell by 18%, with the All-Share Index dropping 17.9%. Losses in the Top 10 and Top 15 Indices contributed significantly to the decline, according to a report by Fincent Securities.
Monthly turnover dropped to ZiG225 million in December, down from ZiG287 million in November. Delta and Econet remained key contributors to market activity. Meanwhile, the Victoria Falls Stock Exchange (VFEX) showed resilience, with market capitalization gaining 1.84% and turnover surging 459% to US$19.6 million.
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Key Takeaways
The ZSE recorded an 18% gain in market capitalization during 2024, supported by inflation-hedging behavior and demand for tangible asset-backed stocks. Financial services, consumer staples, and real estate sectors anchored the market, demonstrating resilience against economic headwinds. While liquidity constraints and forex shortages discouraged foreign investors in 2024, the ZSE’s performance was bolstered by speculative trading during periodic currency devaluations. The VFEX benefited from companies seeking forex-indexed revenues to hedge against currency risks, with market capitalization reaching US$1.3 billion in December 2024. Export-oriented companies and mining firms leveraged global commodity price movements to perform well despite local economic challenges. However, limited liquidity and subdued foreign investor activity constrained trading volumes.
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