ZSE turnover increases by 280 percent

Zimbabwe Stock Exchange Limited (ZSE) turnover for the 2023 financial year increased by 280 percent to $32,909 billion driven largely by listing fees, which saw a 512 percent boost from the prior year.

Justin Bgoni, the company’s chief executive, said the increase in the number of listings on both exchanges, along with the increase in volume and value of trades on the VFEX, also played a role in the turnover increase.

“Additionally, there were a significant number of requests from issuers to extend their publication dates, which boosted the document review fees,” he said in a statement of the financials.

The ZSE’s profit for the year increased by 300 percent from $1,696 billion in the previous year to $6,786 billion in the current year, which was achieved as a result of cost-containment measures implemented during the financial year.

“Despite a 157 percent increase in operating costs due to exchange rate volatility, the business maintained its margins at 18 percent from the previous year, all made possible by the 280 percent increase in turnover,” said Bgoni.

The listing of six issuers on VFEX increased the number of listings to 14 as of December 31, 2023.

Bgoni said the ZSE is optimistic about the prospects of the business environment and the new currency is expected to bring about stability and confidence in the economy, which are likely to have a positive impact on the ZSE’s trading activities in the long run.

“This, in turn, is expected to drive growth and increase investor confidence in the market,” he said.

Bgoni noted that the diversification of products on VFEX is also expected to play a significant role in the exchange’s growth prospects.

He said the increased product diversity will not only attract new investors but also provide existing ones with more opportunities to diversify their portfolios.

Bgoni said the submission of the commodities framework for approval to SecZim in December 2023 marked a significant milestone in the drafting process, reflecting the culmination of dedicated efforts in crafting the legislation.

Bgoni said the ZSE Direct web and mobile platforms underwent significant enhancements to extend the functionality of our Automated Trading System (ATS), specifically catering to retail investors.

“We improved integrations with the ZB Payment Gateway and the EcoCash Payment Gateway, ensuring more efficient and prompt reflection of deposits in investors’ wallets.

“Since its inception in 2020, the platform has experienced remarkable growth of 184,33 percent in 2023, reaching a record 18,200 users as of December 31, 2023,” said Bgoni.-ebusinessweekly