More gains than losses at ZSE as week closes

The Zimbabwe Stock Exchange (ZSE) All Share Index saw a significant increase, closing last week at 128.64 points, a rise of 10,42 percent from the previous week’s 116.50 points.

This uptick was bolstered by 23 risers against eight fallers.

Noteworthy among the risers were CBZ, which surged by 31,23 percent to ZiGc 734.14, and Econet, which climbed 27,85 percent to ZiGc 257.25.

On the losing end, FMP dropped by 9,52 percent to ZiGc 38.00 and EcoCash declined by 6,71 percent to ZiGc 18.67.

Total market turnover for the week stood at ZiG 41.20 million, significantly up from the prior week’s ZiG 22.48 million, with Delta and EcoCash leading the turnover at ZiG 19.53 million and ZiG 12.87 million, respectively.

The Victoria Falls Exchange (VFEX) All-Share Index experienced a modest increase of 2,12 percent, closing at 101.20 points from 102.69 points the previous week. The USD-denominated bourse ended the week with six counters in the green. Edgars was the sole faller, dropping by 55,56 percent to close at US 200 cents.

The Ministry of Finance, Economic Development and Investment Promotion has amended the Finance Act through SI 110 of 2024, reducing the Capital Gains Tax (CGT) withholding tax rate on marketable securities from 4 percent to 2 percent.

Additionally, CGT will not apply to marketable securities trading on the ZSE.

These changes, effective immediately for the next six months, are expected to boost trading participation on the ZSE in the upcoming week.

However, on the VFEX, trading activity is anticipated to remain subdued due to low levels of investor participation, attributed to the competing demand for various USD-denominated assets and minimal foreign investor involvement.

Platinum Securities commented on the market outlook, stating; “We expect these changes to improve trading participation on the ZSE during the coming week. On the VFEX, trading activity is expected to remain subdued on the back of low levels of investor participation on the VFEX arising from competing demand from numerous USD denominated assets and low foreign investor participation.”-eusnesseekly