VFEX jumps 31,5 percent since January 2022

The Victoria Stock Exchange (VFEX) has gained 31,5 percent in value since the beginning of the year, making it a better performer than its fellow bourse the Zimbabwe Stock Exchange.

The VFEX, which ended 2021 valued at US$259,7 million, closed the month of September with its market capitalisation at $341,7 million, a 31,5 percent gain.

The VFEX All Share Index started the year at 109,69 and has since gained to 143,16 as at end of the period under review.

A total 128,059,407 shares valued at $9 million have changed hands during the period.

There are four counters listed on the VFEX with Padenga, which is into gold and crocodile skin production the best performer.

By September 30, 2022, Padenga had gained 71,4 percent year-to-date while SeedCo International had put on 42,4 percent for the same period.

Bindura was a negative 44,4 percent while Caledonia was unchanged.

Meanwhile, the Zimbabwe Stock Exchange market capitalisation gained just 38,1 percent in local dollar terms.

Given the depreciation of the local currency from $108 per US$1 in January to $621 per US$1 by end of September, the market has recorded negative real returns year-to-date.

Market analyst Rufaro Hozheri said the listed firms on the VFEX were performing because they are benefiting from a “boom in commodity prices”.

Hozheri added that the firms have also been producing “remarkable results”.

“For example Bindura that is into nickel, the prices of nickel were up significantly, even if their volumes were a bit down they managed to record impressive numbers,” said Hozheri.

He said Padenga which has ventured into gold has been doing significantly well.

“I think it all goes down to the fundamentals that are underlying those companies that are listed on the VFEX.” -ebusinessweekly