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.
Victoria Falls Stock Exchange Trading Handbook 2024.
Zimbabwe Stock Exchange Trading Handbook 2024.
The period was characterized by liquidity and foreign currency shortages, local currency devaluation, prohibitive borrowing costs, policy uncertainty and disrupted supply chains. Power outages not only impacted Seed Co Limited's plant operations and production, but also farmers' irrigation capacity. Notwithstanding, winter sales were buoyant as wheat and barley sales registered 8% growth to 6,828MT despite the challenges experienced by farmers.
The month of November was characterized by increased activity on the Zimbabwe Stock Exchange on account of growing liquidity in the market. Market capitalisation saw a 22% uplift in nominal terms to ZWL$14.64tn supported by a 17% increase in the Top 10 index. In real terms, the exchange gained a marginal 0.59% m-o-m to a market capitalization of US$1.59bn.
The operating environment remained challenging for Econet as sub-economic tariffs amidst a depreciating local currency continued to threaten the long-term viability of the local telecoms sector.
