ZSE
The month of March was characterised by a continued slowdown on the Zimbabwe Stock Exchange. Market capitalisation surged 71% in nominal terms on the bourse. Nevertheless, exchange rate movements outpaced growth of the bourse leading to a 1.25% drop m-o-m in real terms, from US$2.16bn to US$2.13bn.
Total volumes traded eased 27% m-o-m to 54mn shares with Econet, Ecocash and Star Africa leading in trading with 16.40mn, 7.12mn, and 6.39mn shares, respectively. The total value traded for the month declined 3% in real terms to US$6.00mn from US$6.18mn in February.
Despite the continued slowdown in market cap, the bourse is still up 44% 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 2.5% increase in market capitalisation to US$1.22bn within the month. Although liquidity was low on the market, the All Share Index gained 2.51% during the month and 6 of the 13 counters ended in the green whilst 3 closed the month flat. Axia posted the largest gain in the month, increasing 35%, whilst Padenga and SeedCo International gained 17% and 4% respectively. Zimplow swung 32% in the negative to end the month as the biggest loser whilst National Foods shed off, 12% m-o-m.
Volumes on the VFEX softened by 79% to 13.18mn shares and total value traded for the month was also down 11% to US$3.70mn. Simbisa and Innscor led value contribution on the bourse accounting for 46% and 39% of value, respectively.
The pipeline of counters migrating to the bourse remains steady with Bridgefort Capital having announced its intention to move its listing to the bourse in the current year, whilst Edgars is due to list on the VFEX on the 5th of April 2024.
