VFEX market cap up 7,72 percent

The Victoria Falls Stock Exchange (VFEX) market capitalisation for the second quarter of 2022 increased 7,72 percent to US$273,2 million from US$253,6 million in the first quarter of this year driven by improved foreign participation.

VFEX, a subsidiary of the Zimbabwe Stock Exchange (ZSE), was launched as part of efforts to attract global capital and restore foreign investor confidence in Zimbabwe’s capital markets and help companies raise capital in foreign currency.

Since inception, the listed companies on VFEX have grown to four counters, namely SeedCo International, Padenga Holdings, Caledonia Mining Corporation and Bindura Nickel Corporation.

VFEX in its second quarter 2022 market highlights said that comparing the same period in 2021, the market capitalization increased by 348 percent.

During the period under review, the VFEX recorded 328 trades compared to 351 trades Q1 2022. On a year-to date (YTD) basis, the number of trades is 679.

The VFEX recorded a total turnover of US$3,2 million during the period under review, compared to US$5,3 million in the first quarter, representing a 39,39 percent drop.

Comparing the same period in 2021, the VFEX turnover for the second quarter of 2022 rallied by 10,911 percent and on a YTD basis, the total VFEX turnover stood at US$8,5 million.

During the period under review, the VFEX All-Share Index rose by 7,72 from the 1st quarter of 2022 to close the 2nd quarter at 115,39 points.

The VFEX noted that the All-Share Index started in July 2021 hence there was no comparison for the period in 2021.

During the quarter under review, foreign participation on the VFEX was 38,13 percent during the 2nd quarter of 2022 registering a 35,5 percent jump from the previous quarter.

For the second quarter of 2022, the listings remained the same; however, for the same period in 2021, the number of listed companies went up 300 percent.

During the quarter under review, the VFEX introduced broker controlled accounts with effect from July 1, 2022.

VFEX said that the broker controlled model was necessitated by the need to simplify the account opening process for retail investors.

“Broker controlled accounts deliver lower costs and easier account opening procedures for investors wanting to open a VFEX trading account,” said VFEX.-ebusinessweekly