THE Victoria Falls Stock Exchange (VFEX) recorded a 383% increase in total market turnover to US$58,5 million during the first quarter, indicating a surge in investor interest.
The total market turnover for the period was up from US$12,11 million realised in the same period last year.
The VFEX is a subsidiary of the Zimbabwe Stock Exchange, established to kickstart the International Financial Services Centre earmarked for the special economic zone in Victoria Falls.
The bourse has had mixed results in attracting investment.
VFEX recorded its first delisting in January after National Foods Holdings Limited delisted, two years after it joined the United States dollar-only bourse.
The current number of VFEX listings is 15.
“The VFEX All Share Index, which is the measure of the overall market performance, recorded a 5,99% gain in Q1 2025 to close at 110,32 points (2024: 101,06 points),” VFEX said in its new 2025 first quarter report.
“The VFEX recorded a total market turnover of US$58,5 million in Q1 2025 (2024: US$12,11 million). A record daily turnover of US$40,1 million was recorded in February 2025, surpassing the US$17,5 million recorded in December 2024.”
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During the period under review, foreign investor participation was 3,32%, with the bourse recording a net sell position of approximately US$3 805 238,43.
The VFEX has one debt security listed, but no trades were recorded for the quarter.
The VFEX market capitalisation for the first quarter closed the period at US$1,29 billion, up from US$1,22 billion recorded over the comparative 2024 period.
The volume and value of trades that settled on the VFEX Depository in the first quarter saw improvements during the period.
The VFEX Depository accepts deposits of securities certificates from clients through their depository participants.
“There was a notable increase in trading activity in Q1 2025 compared to Q4 2024. The number of trades executed went up by 0,87%. Similar to the number of trades executed, the number of settled trades also increased by 0,87% in Q1 2025,” VFEX said.
“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% in the value of securities traded on the VFEX.”
The bourse is working closely with the Bond Market Association of Zimbabwe to revive the market.
“The association, through its committees, is working on a methodology for a yield curve for unlisted debt instruments that we intend on onboarding onto the Exchange,” VFEX said.
“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.”
The exchange also plans to trade commodities.
“VFEX has partnered with strategic players in the market to create a platform that reflects interests of parties involved, including miners, logistical companies, warehouse operators and policy makers, among others,” the US dollar-denominated bourse said.
“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 before the launch of commodities trading.”
