Strong stock market performance signals growth of Zimbabwe’s economy: Prof Mthuli Ncube

THE stock market in Zimbabwe is on a growth trajectory, which have seen capitalisation going up and an increase in instruments during the first half of the year.

This was said by the Minister of Finance, Economic Development and Investment Promotion Professor Mthuli Ncube in the 2024 Mid-Year Budget and Economic Review Statement, last Thursday.

Recently, the Zimbabwe Stock Exchange (ZSE) announced a strong performance by listed companies, promising a bright future for the Zimbabwean economy.

With a total market turnover of ZWG184 million in the second quarter of 2024, the exchange has signaled a promising outlook for the country’s economic growth and development.

Prof Ncube said since the adoption of the ZiG currency, the ZSE market capitalisation went up by 35 percent, from ZiG25,6 billion in April 2024 to ZiG38,7 billion in June, while the VFEX market capitalisation increased to US$1,3 billion, as at 30 June 2024.

“The stock market is on a growth trajectory, with the number of participants on the VFEX having increased to 15 instruments during the first half of the year,” he said.

According to a recent ZSE newsletter, the impressive performance of the top five traded companies has been a major driver of this success, contributing significantly to the overall growth of the exchange.

These companies have demonstrated remarkable resilience and potential, weathering economic challenges and emerging stronger.

Their performance has not only boosted the ZSE’s turnover but also reflects the underlying strength and potential of the Zimbabwean economy.

This impressive showing is a testament to the country’s ability to adapt, innovate, and thrive, even in the face of adversity.-chroncile