VFEX sees massive jump in Q1 turnover

The Victoria Falls Stock Exchange (VFEX) recorded a market turnover of US$58,5 million in the first quarter of 2025, representing a 383 percent increase from US$12,11 million in the first quarter of 2024.

This signals continued improvement in trading activity on the US dollar-denominated bourse.

VFEX is a subsidiary of the Zimbabwe Stock Exchange (ZSE) established to drive the evolution of the International Financial Services Centre (IFSC) under the Victoria Falls special economic zone.

According to the VFEX 2025 first quarter newsletter, the record turnover for the quarter was driven by a record daily turnover of US$40,1 million recorded in February 2025, from US$17,5 million recorded in December 2024.

“The VFEX All Share Index, which is the measure of the overall market performance, recorded a 5,99 percent gain in Q1 2025 to close at 110,32 points,” reads part of the newsletter.

During the quarter under review, VFEX’s total market capitalisation was US$1,29 billion, which was 5,74 percent up from US$1,22 billion in Q1 2024.

In the period under review, foreign investor participation accounted for 3,32 percent of activity, and Q1 2025 recorded a net sales position of US$3,805,238.43.

VFEX said the exchange continued to have 1 debt security listed, the Karo Mining Limited bond, and there were no trades recorded for the quarter.

According to the newsletter, the VFEX Depository currently holds securities for a total of 16 issuers: 11 listed equities, 1 unlisted and privately held equity, 3 depository receipts (DRs) and 1 bond.

During the period under review, the average dematerialisation for the counters on the VFEX depository for Q1 2025 was 67,74 percent.

Dematerialisation promotes a more liquid market by facilitating easier buying and selling of shares.

According to the newsletter, there was a notable increase in trading activity in Q1 2025 compared to Q4 2024, and the number of trades executed went up by 0,87 percent.

“Similar to the number of trades executed, the number of settled trades also increased by 0,87 percent in Q1 2025.

“The observed rise in trade volume from the fourth quarter of 2024 to the first quarter of 2025 correlated with a corresponding increase of 116.98 percent in the value of securities traded on the VFEX,” the newsletter says.

According to the newsletter, the Exchange has been working closely with the Bond Market Association of Zimbabwe in trying to revive the market.

VFEX said the association, through its committees, was working on a methodology for a yield curve for unlisted debt instruments that it intends to onboard onto the Exchange.

“The fixed income pipeline looks positive, and the exchange will engage methods to make sure there is secondary market participation, which is something that has been missing on our market,” reads part of the report.

On the Commodity Exchange Market initiatives, VFEX said there were no listings during the quarter, but workstreams on the listings pipeline are continuously in progress.

On January 31, 2025, the VFEX had its first delisting of National Foods Holdings Limited, and the current number of listings is at 15.

On the Commodity Exchange, VFEX said the exchange continued its endeavours to begin the trading of commodities on the bourse.

VFEX said it had partnered with strategic players in the market to create a platform that reflects the interests of parties involved, including miners, logistical companies, warehouse operators and policy makers, among others.

“The exchange is also beginning engagements with miners to design the best model for a hybrid trading of commodities and their derivatives.

“The VFEX, together with its strategic partners, will be engaging in the final endeavours prior to the launch of the commodities trading,” VFEX said.

VFEX said there were no listings during the quarter, but workstreams on the listings pipeline are continuously in progress.-herald