ZSE slips 2,75pc amid dwindling turnover, VFEX also down 4,03pc
The Zimbabwe Stock Exchange (ZSE) experienced a challenging week, with the All-Share Index declining by 2,75 percent to close the week lower.
This downturn was primarily influenced by losses in 12 counters, including EcoCash, CBZ and Delta.
On the other hand, only nine counters registered gains, with Econet being the sole blue-chip stock among the risers.
Market turnover was significantly impacted, plunging by 87,29 percent to ZiG 17.02 million from ZiG 133,86 million in the prior week.
Delta dominated trading activity, contributing ZiG 8,76 million to the total turnover. On the exchange-traded funds (ETFs) front, Cass Saddle Agric ETF emerged as the standout performer, gaining 39,37 percent to close at ZiGc 4.00. Conversely, the Morgan Multi-Sector ETF saw a steep decline of 12,60 percent, ending the week at ZiGc 210.64, down from ZiGc 241.
The Victoria Falls Exchange (VFEX) also faced headwinds, with the VFEX All-Share Index dropping 4,03 percent to settle at 106.48 points. Among the gainers, Edgars led with a remarkable 24,59 percent rise to US1.52 cents. However, seven counters closed in the negative territory, with National Foods declining sharply by 19,92 percent to US143.25 cents. This drop follows the company’s announcement in November of a voluntary delisting from the VFEX.
Thursday saw the release of the 2025 National Budget, themed “Building Resilience for Sustainable Economic Transformation”. The budget outlines a projected expenditure of ZiG 276,4 billion against revenue collections of ZiG 270,3 billion, leaving a deficit to be financed through treasury bills and external sources.
Notably, the budget emphasised enhancing tax compliance in the informal sector, including mandatory income tax registration for all legal entities starting January 2025. Non-compliance will attract penalties based on business operations.
Looking ahead, mixed trading is anticipated on the ZSE as investors take profits ahead of year-end. Activity on the VFEX is expected to remain subdued due to limited foreign investor participation and competition from USD-denominated assets.
Platinum Securities noted: “The festive season often brings a mixed bag for local markets, with subdued foreign participation and cautious local sentiment shaping trading activity. Investors should remain vigilant as the year draws to a close.”-esinessweekl
