THE Victoria Falls Stock Exchange (VFEX)’s strong performance is expected to continue, driven by an ongoing migration of high-quality Zimbabwe Stock Exchange (ZSE) counters and firm global gold prices, market analysts say.
In April, the ZSE — once Zimbabwe’s primary exchange for 132 years — was overtaken by the rapidly expanding VFEX, just six years after its launch, as investors increasingly shifted to the US dollar-denominated bourse in search of value.
The shift was partly triggered by the delisting of Econet Wireless Zimbabwe from the ZSE, followed by the listing of its infrastructure arm, Econet InfraCo, on the VFEX.
As of last Friday, the ZSE’s market capitalisation stood at approximately US$3,26 billion, compared to VFEX’s US$3,54 billion.
According to FBC Securities’ May 2026 market report, more delistings and migrations are expected to underpin VFEX growth.
“The VFEX is poised for continued strong performance, driven by two structural trends. First, the migration of high-quality ZSE counters (such as TSL Limited, which is seeking shareholder approval for a VFEX listing in June 2026) will expand the exchange’s market capitalisation and improve liquidity,” FBC Securities said.
The brokerage added that elevated gold prices — despite easing from a January 2026 peak of US$5 405/oz — remain supportive of earnings for gold-linked VFEX issuers.
However, analysts warned that liquidity remains the exchange’s key vulnerability.
- Stop clinging to decaying state firms
- Piggy's Trading Investing Tips: De-risking mining projects
- Chance to buy 'undervalued' counters: FBC
- Zimbabwe's capital markets collapse
Keep Reading
“The main risk is liquidity concentration: May’s 81% turnover collapse demonstrates that the VFEX is still a ‘thin’ market where a single week of low activity can distort the entire month,” FBC Securities said.
The firm noted that while outlook remains positive, investors should expect continued volatility in turnover and periodic price dislocations. It stressed the need for a stronger pipeline of listings and the development of a market-making ecosystem to support sustainable growth.
VFEX recorded a solid month in May, with the All-Share Index rising 7% month-on-month and year-to-date gains reaching 38,3%, according to FBC Securities.
However, turnover fell sharply from US$89,3 million in April to US$16,8 million in May, underscoring continued reliance on a few large trades and episodic liquidity.
Victoria Falls Stock Exchange closed May with further gains, with IH Securities reporting that the All-Share Index rose 7,08% to 245,12, while market capitalisation increased 7,11% to US$3,79 billion, lifting year-to-date gains to 69,4%.
IH Securities said the rebound reflected renewed positioning into hard-currency stocks ahead of March-quarter results.
Among top performers, Zimplow Holdings surged 126,82%, followed by Edgars Stores Limited at 126% and First Capital Bank Zimbabwe up 38,05%.
On the downside, Caledonia Mining Corporation fell 20,91%, while Nedbank Zimbabwe and Seed Co International also recorded losses.
IH Securities noted that liquidity weakened significantly, with total value traded dropping 81,22% to US$16,77 million as April’s block trade effect faded.
Padenga Holdings dominated activity, contributing US$8,01 million in trades, followed by Innscor Africa Limited with US$5,37 million.
Analysts say the index rebound amid falling liquidity reflects a holding pattern, with investors selectively positioning in hard-currency counters while awaiting clearer earnings signals.
Looking ahead, IH Securities said March-quarter USD revenue performance, cost-pass-through trends, and gold price stability will be key drivers of VFEX sentiment in the coming months.
