Zim’s equities markets monthly review for April

By Kudakwashe Taimo | 1h ago

Zimbabwe’s equity markets delivered mixed performance in April, with trading activity and market capitalisation heavily influenced by major corporate actions, particularly Econet Wireless Zimbabwe’s delisting from the Zimbabwe Stock Exchange (ZSE).

While broader market sentiment remained relatively stable, liquidity conditions weakened significantly on the ZSE, whereas the Victoria Falls Stock Exchange (VFEX) experienced a sharp surge in turnover driven by large block trades and increased institutional activity.

The ZSE All-Share Index gained 1,85% month-on-month to close at 365.17 points. Performance across the broader market was uneven, however. The Top 10 Index declined 0,53%, reflecting weakness in larger capitalised counters, while the Top 15 Index was broadly flat at +0,04%.

In contrast, the Medium Cap Index outperformed strongly, advancing 11,51%, while the Small Cap Index remained unchanged at 100.00 points.

Despite the positive movement in the All-Share Index, total market capitalisation declined by 26,27%. This largely reflected the impact of Econet’s delisting on March 31.

The delisting materially altered trading dynamics on the ZSE. Monthly turnover declined 56,22% to ZiG1,24 billion from ZiG2,83 billion recorded in March. The slowdown was unsurprising given Econet alone accounted for approximately 70% of March turnover.

In April, Tigere REIT emerged as the dominant liquidity counter, accounting for 54% of monthly turnover, followed by Delta Corporation at 32%, effectively positioning the two as the de facto liquidity anchors on the ZSE post-Econet.

On the VFEX, performance was weaker from an index perspective, with the All Share Index declining 8,38% to 228.92 points. However, underlying market activity remained exceptionally strong. Market capitalisation rose 20,80% to US$3,59 billion driven by Econet InfraCo’s listing at the beginning of the month, while turnover surged 483,51% to US$89,4 million from US$15,3 million in March.

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The increase in turnover was primarily attributable to Padenga Holdings and African Sun. African Sun recorded a US$22,5 million block trade ahead of its delisting from the VFEX on April 20, while Padenga registered a US$49,9 million transaction on April 23.

Tanganda Tea Company emerged as the top-performing counter on the ZSE, rallying 93% during the month. The sharp re-rating followed Innscor Africa Limited’s acquisition of a 27% stake in Tanganda after underwriting the company’s US$8 million rights offer via its subsidiary, Rutanhi Beverages. The transaction signalled growing strategic interest in agriculture-linked assets and improved investor sentiment towards the counter.

TSL also performed strongly, gaining 29% following the company’s announcement of plans to voluntarily delist from the ZSE and relist on VFEX. The proposed migration reflects a broader trend among corporates seeking US dollar-denominated valuation frameworks, deeper institutional participation, and improved capital preservation on VFEX.

Conversely, Unifreight Africa was the month’s biggest decliner, shedding 40% despite its acquisition of Cheetah Express Logistics. Investor concern centred primarily on severe margin compression in FY2025 results.

While the acquisition strategically shifts Unifreight toward a more diversified and potentially higher-quality logistics model, near-term profitability pressures, rising operating costs, and integration risks weighed heavily on sentiment.

First Mutual Holdings Limited (FMHL) also came under pressure, declining 24% during the month amid concerns around increased competition in motor insurance and regulatory uncertainty surrounding vertical integration within the insurance sector. Nevertheless, the group’s underlying FY2025 performance remained solid

, with revenue increasing 19% to US$206,2 million and profitability recovering strongly following the absence of prior-year fair value losses. Health insurance continued to anchor earnings growth, supported by ongoing migration toward US dollar -denominated policies.

A notable corporate development during the month was First Mutual Wealth Management’s launch of the FMW Gold ETF ahead of its planned VFEX listing on May 8. The US dollar-denominated ETF, backed by offshore gold and gold mining assets, represents an important product innovation for Zimbabwe’s capital markets. The structure offers investors diversified exposure to both gold prices and gold mining equities through a single listed instrument.

Looking ahead to May, Delta Corporation is expected to dominate turnover activity on the ZSE following Econet’s exit. The counter remains the market’s most liquid stock and is likely to attract heightened investor attention, ahead and beyond its analyst briefing scheduled for May 13.

Afdis, Delta’s subsidiary, may also experience increased traction following the release of FY2026 results and the declaration of a final dividend of US$0,010 per share, bringing the full-year payout to US$0,015 per share and implying a yield of approximately 2,85%.

On the VFEX, the newly listed FMW Gold ETF is likely to attract both retail and institutional participation given growing investor preference for US dollar -denominated defensive assets. Counters on the watch list include First Mutual Properties and TSL, amid ongoing discussions around delisting and potential migration to VFEX.

Overall, April reflected a transitional month for Zimbabwe’s capital markets. While the ZSE experienced a post-Econet liquidity adjustment, VFEX continued strengthening its position as the preferred exchange for US dollar liquidity, institutional transactions, and capital preservation-focused listings.

Taimo is an investment analyst with a talent for writing about equities and addressing topical issues in local capital markets. He is an active member of the Investment Professionals of Zimbabwe community, pursuing the Chartered Financial Analyst charter designation.