ZSE suffers bloodbath amid economic pressures, VFEX Gains Ground

The Zimbabwe Stock Exchange (ZSE) endured another challenging session on Thursday as the liquidity squeeze in the economy continued to pressure investors.

The All Share Index shed 1,20 percent, closing at 222.96 points, while the Top 10 Index dropped 1,40 percent to 217.01 points. The market capitalization fell by 2,23 percent, reflecting the persistent lack of liquidity as investors scramble for cash amidst dwindling economic resources.

Trading activity was subdued, with the value of trades plummeting by 73,39 percent to ZiG 10,76 million. Delta led the value charts with ZiG 6,93 million, followed by Econet at ZiG 1,10 million.

However, major counters like BAT and FBC suffered heavy losses, plunging 15 percent and 9.09 percent, respectively. Conversely, First Mutual Properties emerged as the top gainer, advancing 7.94 percent.

On the Victoria Falls Stock Exchange (VFEX), the All Share Index rose 0,42 percent to 97,77 points, buoyed by gains in Axia Corporation, which surged 20 percent. Trading volumes on VFEX remained thin, with a total value of US$ 5 250.35.

Globally, the oil market saw Brent crude trading at US$78.50 per barrel, up 0,3 percent as supply concerns from OPEC+ production cuts offset demand worries from economic uncertainties. Meanwhile, gold prices edged higher, trading at US$1 960 per ounce, as investors sought safe-haven assets amidst volatile markets and central banks’ cautious monetary policies.

In the outlook, the ZSE remains under significant pressure as liquidity constraints persist, leading to reduced investor participation and declining trade volumes. Investors are likely to continue seeking refuge in VFEX and global commodities, especially gold, as uncertainty looms.

A recovery in market sentiment will depend heavily on improvements in the local economic environment and enhanced access to liquidity.-bnessweekl