SECURITIES firm, IH Securities, has tiiped “agile companies” on the Zimbabwe Stock Exchange (ZSE) to perform better as they can navigate the current macroeconomic environment.
ZSE’s performance continues to move in tandem with shifts in the money supply dynamics, amid exchange rate volatility.
In its April 2025 monthly report, IH Securities said the ZSE market capitalisation weakened to ZiG58,08 billion in April, down 7,12% from ZiG62,53 billion in March.
Within the same period, the local currency depreciated to US$1: ZiG26,81 from March’s ZiG26,76.
“In our view, performance of the ZSE still depends heavily on money supply dynamics,” IH Securities said.
“Given the delicate monetary space with the likelihood of policy shifts, we are in favour of agile companies that can navigate the current environment and in the absence of capital gains, those that are consistent dividend payers.”
The All-Share Index fell 7,38% from March while the Top-10 Index was relatively more resilient, falling 6,54% within the period.
“In real terms, the market capitalisation retreated 7,12% to US$1,66 billion,” IH Securities said.
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According to the firm, Nampak Zimbabwe Limited led in the performance last month with a 107% increase in share price in nominal terms, while TSL Limited (TSL) followed with a 42% increase.
TSL is finalising a transaction to acquire Nampak for US$25 million from its South African parent company, Nampak Limited.
The worst performance, according to the IH, was Mashonaland Holdings Limited (Mashold), which slumped 24% on a month-on-month basis.
In its financial results for the period ending December 31, 2024, released in March, Mashold recorded a 7% decline in profit after tax to US$3,72 million from the prior year.
“Activity on the exchange improved with volumes increasing 62,03% to 150,50 million shares. Star Africa led on volume performance with 57,72 million shares trading hands while Proplastics came in second at 30,47 million shares,” IH Securities said.
“Value traded on the ZSE increased 9,33% in nominal terms to ZiG268,27 million, while average daily value traded in real terms increased 12,49% from US$0,33 million in March to US$0,37 million.”
IH Securities said Delta Corporation Limited and Econet Wireless Zimbabwe remained pole on value traded for the month.
“The stock market was a story of two tales, with the VFEX [Victoria Falls Stock Exchange] seeing overall market growth with market capitalisation being 3,62% ahead and the All-Share index gaining by 3,94% while the ZSE market capitalisation retreated 7,12% and the top ten index falling 6,97%,” IH Securities said.
“Money supply dynamics have played a significant role in the ZSE’s subdued performance as tight monetary policy continues to squeeze liquidity while buoyant gold prices have provided a welcome uplift on some VFEX counters.”
