THE Victoria Falls Stock Exchange (VFEX) is now Zimbabwe’s largest equities market as its capitalisation surged to US$3,91 billion in June—nearly 40% above the Zimbabwe Stock Exchange (ZSE)—amid sustained demand for United States dollar-denominated assets.
The widening gap between the two exchanges comes amid the March 31 delisting of Econet Wireless Zimbabwe Limited from the ZSE, which wiped about US$1,2 billion from the local bourse’s market capitalisation and helped the VFEX overtake the main exchange in April.
Since then, continued company migrations have intensified concerns over the ZSE’s ability to retain large counters and rebuild its market value.
Just recently, ZSE notified the investing public of the voluntary termination of listing of TSL Limited (TSL) and First Mutual Properties Limited (FMP) with effect from July 2, wiping values of US$94,04 million and US$19,76 million respectively.
TSL has since listed on the VFEX this past Friday.
The growth of VFEX confirms that investors are shunning ZiG denominated assets despite the authorities pushing for a mono currency regime by 2030.
“The VFEX All-Share Index closed June positive, gaining 3,67% to 254,12, with market capitalisation rising 3,81% to US$3,91 billion over the month,” IH Securities said in its recent June 2026 report.
“The bourse continues to stand out on a year-to-date basis, with market capitalisation up 75,08% since the start of the year, a marked contrast to the ZSE and reflecting sustained listings momentum and USD-denominated demand.”
Comparatively, the ZSE closed June firmly positive in ZiG terms, with market capitalisation rising 7,55% to ZiG94,24 billion, about US$2,8 billion.
“The All-Share Index gained 7,33% to close at 417,81, while the Top 10 outperformed with a 10,15% advance to 423,32,” IH Securities said.
“With the interbank rate broadly stable, USD market capitalisation moved in step, up 2,12% to US$2,8 billion.”
The capital markets trend could be seen in the first quarter of the year, when the combined market capitalisation across the ZSE, VFEX, and Financial Securities Exchange surged by 51,1% to US$8,58 billion, according to the Securities and Exchange Commission of Zimbabwe.
The commission noted that this reflected stronger market participation and positive investor sentiment.
The VFEX All Share Index gained 41,07%, while the ZSE All Share Index rose 29,04%, during the quarter, signalling robust fundamentals across both exchanges.
“In our view, June's advance on the VFEX was led by the consumer and QSR names suggesting investors are leaning into cash-generative businesses with hard-currency earnings,” IH Securities said.
“Given the exchange's improving liquidity, upcoming listings on the VFEX should broaden the opportunity set available to investors.”
Other leading brokers confirmed that demand for U.S. dollar denominated assets remains strong begging the questions what will happen when de-dollarisation occurs.
“The VFEX continued its strong run in June 2026, with the All-Share Index advancing 3,7% month-on-month and extending its year-to-date gain to 43,5%,” FBC Securities said in its June 2026 report.
“Market activity also improved, with turnover rising 20,1% from May levels, while market capitalisation increased by 4,1%, reflecting sustained investor demand for US dollar denominated assets.”
The broker noted that the rise in turnover was particularly encouraging as it was supported by broader participation across counters, reducing the market’s reliance on a handful of stocks.
Innscor Africa was the top performer in June with a 16,48% increase in share price, followed by Simbisa Brands at 14,13% and Caledonia Mining Corporation at 11,41%.
On the downside, however, Edgars Stores Limited was the standout laggard, sliding 36,95%, followed by Nedbank Zimbabwe Depositary Receipts at 27,78% and the Econet Infrastructure Company declining by 13,24%.
Padenga was the largest value contributor, with US$7,4 million traded over the month, narrowly ahead of Innscor which traded US$7,08 million in value.
“Unlike the ZSE, the VFEX’s US dollar-denominated structure continues to provide investors with a natural hedge against local currency risk, making it an attractive destination for both local and foreign capital. Investor sentiment has also been supported by elevated gold prices, which remain near historically high levels despite some recent volatility,” FBC Securities said.
“Strong gold prices continue to underpin earnings expectations for mining and resource linked companies while supporting Zimbabwe's overall foreign currency generation. In addition, the ongoing tobacco marketing season continues to inject US dollar liquidity into the economy, some of which is likely finding its way into the equities market and supporting demand.”
FBC Securities said the outlook for the VFEX remained positive, supported by continued demand for US dollar-denominated assets, sustained foreign currency inflows from key export sectors, and the prospect of additional listings migrating from the ZSE.