ZSE gains amid January effect as VFEX faces continued pressure

Tapiwanashe Mangwiro

Trading on the Zimbabwe Stock Exchange (ZSE) on Monday saw mixed performances across key indices.

The All Share Index edged up 0,23 percent to close at 208.84 points, while the Top 10 Index gained 0,37 percent, reaching 207.37 points.

Notable gainers included Econet, which rose by 9,85 percent and ZHL, which advanced 6,66 percent. On the other hand, Proplastics and Mash Holdings were among the biggest losers, declining by 11,50 percent and 12,20 percent, respectively.

Total value traded on the ZSE plummeted by 92,07 percent to ZiG 2,69 million, indicating subdued investor activity.

The Victoria Falls Stock Exchange (VFEX) mirrored a downward trend in trading activity.

The All Share Index on VFEX increased slightly by 1,11 percent to 102.59 points, driven by gains in African Sun which advanced 11,39 percent and SeedCo International which was up 6,27 percent.

However, overall market sentiment remained cautious, with total value traded amounting to just US$211 972.04.

In the macroeconomic landscape, The Herald reported that the Zimbabwe Investment and Development Agency (ZIDA) unveiled lucrative investment opportunities in real estate and agriculture sectors.

The Government is inviting investors to participate in a US$28 million Build-Operate-Transfer (BOT) project to redevelop three derelict structures into modern 10-story residential blocks comprising 300 units.

The Government will contribute US$4,1 million in land and services, while investors are expected to fund the remaining US$24 million.

Looking ahead, analysts predict the ZSE will benefit from the “January Effect,” with stock prices likely firming as investors capitalise on undervalued stocks post-festive season.

Conversely, the VFEX is expected to face continued headwinds, reflecting broader market uncertainty.

Platinum Securities noted; “The ZSE’s recovery potential is bolstered by domestic liquidity flows and the rebalancing of portfolios. However, the VFEX’s subdued performance underscores the need for stronger fundamentals to attract foreign capital inflows.”