Mixed equity markets on Tuesday as gold remains firm

Zimbabwe’s stock markets showed mixed performances on March 4, 2025, with gains in key indices, while economic headwinds weighed on select counters.

The Zimbabwe Stock Exchange (ZSE) All Share Index rose by 1,22 percent to 206.19 points, driven by notable gains in CAFCA and Econet Wireless, while the Top 10 Index climbed 1,76 percent.

Market capitalisation also advanced by 1,85 percent to US$2,37 billion, extending year-to-date growth to 7,56 percent. Meanwhile, the Victoria Falls Exchange (VFEX) All Share Index surged 3,57 percent to 109.45 points, with its market capitalisation rising 3,58 percent to $1,23 billion.

Despite the broader market strength, some key stocks faced declines.

TSL Limited reported a sharp 55 percent drop in profit after tax to US$3,6 million in FY 2024, with EBITDA down 5 percent at US$11,39 million. The company’s revenue inched up by just 1 percent to US$36,9 million, reflecting tough operating conditions.

On the dividend front, Econet is set to pay a 0.73 US cent dividend per share on March 26, while Simbisa’s dividend of 0.62 US cents per share will be paid on March 20.

Commodity markets also presented a mixed picture.

Gold continued its bullish trend, trading around US$2 120 per ounce, supported by safe-haven demand amid economic uncertainties and expectations of rate cuts by the Federal Reserve.

Platinum prices, however, remained subdued at approximately US$930 per ounce as weaker industrial demand weighed on sentiment.

Oil markets saw volatility, with Brent crude trading near US$84 per barrel, driven by geopolitical risks and OPEC+ supply constraints.

Liquidity conditions on the ZSE remained uneven, with daily turnover fluctuating significantly.

The market saw notable value traded on February 28 at ZiG 23,51 million but dropped to ZiG 7,93 million by March 4.

Similarly, on the VFEX, turnover was volatile, peaking at an all-time record US$40,17 million on February 26 before plunging to just US$117 708 by March 4.

Investors are now eyeing corporate updates, with Meikles’ AGM scheduled for March 7 and ART Holdings’ AGM set for March 11.

The broader economic backdrop remains a key concern, as inflationary pressures and exchange rate volatility continue to impact corporate earnings.

However, market sentiment appears cautiously optimistic, with the ZSE and VFEX maintaining positive year-to-date gains.

As Zimbabwe’s financial markets navigate ongoing challenges, investor focus will likely remain on policy developments, commodity price movements and corporate performance, shaping trading patterns in the coming months.-ebsienssweekl