Staff writer
Zimbabwe’s capital markets are navigating a complex environment marked by tight liquidity, currency uncertainty, and shifting institutional investment patterns in the second half of the year.
This is coming at a time when the Zimbabwe Stock Exchange turnover saw a total of 1.27 billion shares exchanging hands during the first half of the year, up 179% from 456 million shares were traded during the same period last year, a recovery that, however, reflects a gradual recovery in investor confidence despite tight liquidity.
In its half-year economic overview, FBC Securities said while the ZSE benefits from structural reforms such as ZSE Holdings’ self-listing, its momentum is constrained by reduced pension fund appetite for listed equities, now down to around 19% of total pension assets (as of March 2025), as funds pivot toward investment properties (46%) and private equity (4.2%).
“The increased volumes were, however, traded in a fewer number of trades (11,408), a 31% drop from 16,583 in HY1 2024. This indicates trading activity became more concentrated, with large trade sizes executed by fewer participants.
The All-Share Index declined by 9.35%, driven largely by constrained money supply and sustained foreign investor selling that outpaced purchases nearly threefold.
Nevertheless, the overall market capitalisation remained steady around ZiG60 billion (up 3.41% from January market cap) largely due to sector rebalancing by investors,” the research firm said.
Moreover, FBC Securities said that although volumes on the ZSE increased in HY1 2025, the number of trades declined by 31% year-on-year, indicating that trading activity became more concentrated, with larger trade sizes executed by fewer participants, most likely institutional block trades.
On the VFEX, the firm said it continued to position itself as a credible USD-denominated platform for export-aligned and institutional-grade listings.
“In H1 2025, a total turnover of S$73 million was recorded compared to HY 1 2024, where VFEX recorded a 232% increase in turnover.
A total of 1.28 billion shares changed hands during the period, up 795% from 143 million shares traded during the same period last year.
The increased volumes are in line with the 26% increase in the number of trades (7,394), from 5,874 in HY1 2024. This likely indicates an increase in retail participation.
The All-Share Index grew by 3% to 107.21, driven largely by improved trading activity as evidenced by growing volumes and number of trades.”
“However, market cap marginally lost 1.9% as prices failed to adjust to growing market activity and the delisting of National Foods.
Eagle REIT is listing on 16 May 2025 as the first REIT on VFEX and the first developmental REIT in Zimbabwe.”
Going forward
FBC Securities said policy consistency, liquidity enhancement, and targeted product innovation will be critical to sustaining investor confidence and attracting meaningful capital flows across both exchanges.
