ZSE | IH Monthly Snapshot Report - February 2024


    The month of February was characterized by a slowdown in activity on the Zimbabwe Stock Exchange. Market capitalisation saw a 10% uplift in nominal terms to ZWL$39.254tn. Exchange rate movements however outpaced growth of the bourse leading to a 16% drop m-o-m in real terms, from US$2.60bn to US$2.16bn.

    Total volumes traded thinned 12% m-o-m to 74mn shares with Zimre Holdings Limited, Econet, and Dairibord leading in trading with 28.53mn, 6.75mn, and 6.58mn shares, respectively. The total value traded for the month declined 26% in real terms to US$6.18mn from US$8.36mn in January.

    Despite the slowdown in market cap witnessed by month end, the bourse is still up 46% in real terms YTD potentially signaling the setting of a new base. Relative to historical averages, the exchange remains undervalued providing for select buying opportunities. Forward-looking, the uncertainty around money supply developments and consumer liquidity in 2024 propels us to lean more towards defensive stocks that have strong dividend policies.



    The Victoria Falls Stock Exchange saw a 3.83% decline in market capitalisation to US$1.19bn within the month. The market generally traded in weakness, with only 3 of the 13 counters ending in the green whilst WestProp closed the month flat. First Capital Bank posted the largest gain in the month, increasing 27%, whilst mining entities BNC and Caledonia gained 10% and 9% respectively. Padenga swung 17% in the negative to end the month as the biggest loser whilst African Sun shed off, 14% m-o-m.

    Volumes on the VFEX increased by 289% to 62.25mn shares on the back of a block trade which saw 51mn African Sun shares trade hands. Total value traded for the month was however down 1.84% to US$4.15mn. African Sun and Innscor led value contribution on the bourse accounting for 37% and 20% of value.

    The pipeline of counters migrating to the bourse remains steady with Bridgefort Capital and Edgars having announced their intention to move their listings to the bourse in the current year.


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