ZSE
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.
VFEX
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.
