Zimbabwe Stock Exchange Projected to Experience Turnover Decline in 2023

The Zimbabwe Stock Exchange (ZSE) is anticipated to report one of its lowest turnover figures since 2009, despite an influx of security dealers and financial advisors in 2023. The regulatory body, Securities and Exchange Commission of Zimbabwe (SecZim), provided insights concerning ZSE's performance. SecZim's chief executive officer, Anymore Taruvinga, expressed that even with the turnover decrease to approximately US$173 million and market capitalization reducing to US$2.79 billion from over $6 billion, the ZSE still holds substantial potential for growth.

Present Challenges and Potential

At the 2023 Capital Markets Awards, Taruvinga shared his observation during a panel discussion. He noted that the current turnover is the third lowest recorded since dollarization in 2009. The market capitalization stands at US$2.79 billion as of mid-December, markedly down from its peak. Despite these challenging conditions, he mentioned an opportunity for growth, indicated by the positive rise of the Victoria Falls Stock Exchange and the introduction of new financial products. Taruvinga emphasized the prevailing resilience within the ZSE, which is evident in the growing number of licensed players in the marketplace.

Regulatory Impact on Market Performance

An IPAZ representative, Ms. Simbiso Musa, also spoke on the subject. She highlighted the regulatory measures aimed at curbing market speculation, which have inadvertently impacted foreign investment and investor flexibility in the market. Musa asserted the necessity for regulatory balance to promote market activity and encourage investor participation.

New Listings and Strategies

As an illustration of the ongoing activity within the ZSE, the market saw the listing of Revitus Property Opportunities Real Investments Trust (Revitus REIT), representing the exchange's second REIT listing. Managed by Datvest, a CBZ asset management unit, Revitus REIT is an initiative of the NRZ Contributory Pension Fund, designed to unlock liquidity from market properties to ensure timely payment of member benefits.

Zimbabwe, Stock, Turnover