Nelson Gahadza,Zimpapers Business Hub
The Zimbabwe Stock Exchange Holdings (ZSEH) says the strong performance of the Zimbabwe Stock Exchange (ZSE) in the second quarter of this year is testament to the stability in key fundamentals, especially currency and inflation.
This comes against the background that market analysts often pointed out that the stock market’s strong rally was in the past largely driven by inflationary trends and local speculative activity rather than fundamental growth.
Chief executive officer Mr Justin Bgoni told this publication in an interview that the situation had changed and investors were now coming to the market because of the real economic fundamentals.
“If you look at how the market has performed, the currency is stable, which means that currency is no longer an issue; therefore, people are no longer coming to our market just to hedge,” he said.
Mr Bgoni said he had always maintained that when a currency is stable, everything becomes normal.
Since Zimbabwe adopted the Zimbabwe Gold (ZiG) in April 2024, the currency has maintained commendable stability, evidenced by low inflation and exchange rate stability, anchored by prudent monetary and fiscal policy management as well as supportive Government measures.
Despite scepticism and resistance to transacting using the local currency by some speculative investors, data from the central bank shows that the ZiG is gaining economic momentum.
FBC Securities, a stockbroking and equities research firm, recently said policy consistency and improved ZiG liquidity could sustain stock market gains in 2025.
According to the ZSE’s 2025 second quarter (Q2) newsletter, the stock market recorded a total turnover of ZiG1,49 billion in Q2 2025, representing a 53,14 percent increase from Q1 2025.
The total market capitalisation for Q2 2025 stood at ZiG62,64 billion, a decrease of 3,08 percent from the previous quarter.
In the quarter under review, the Victoria Falls Stock Exchange (VFEX), a subsidiary of the ZSEH, recorded a total market turnover of US$15 million.
Source: The Herald
Source: The Herald
