The Zimbabwe Stock Exchange (ZSE) has made some changes. It wants to help people understand how different parts of the market are doing.
The ZSE created new indexes on January 1, 2025. An index measures a group of stocks. The Top 10 Index looks at the biggest companies on the ZSE. It shows how the whole market is performing.
There are also indexes for the top 15 and top 25 companies. Medium and small companies have their indexes, too. This lets investors see how companies of different sizes are doing.
The indexes include some companies listed on the Victoria Falls Stock Exchange (VFEX). VFEX uses US dollars instead of Zimbabwean money.
ZSE's CEO, Justin Bgoni, says the indexes will change every few months. The top indexes include big names like Econet and Delta, while the medium and small indexes include lesser-known firms.
The ZSE did well in 2024. Its value rose 18%. The main index jumped 118% by the end of the year. Investors bought stocks to protect against inflation. They liked companies with real assets.
But not all companies did well. Smaller ones had a harder time. They didn't earn as much money, and there were also more rules to follow.
The VFEX attracted companies that wanted to avoid currency risks. They could get paid in foreign money there. However, there weren't a huge number of trades on the VFEX yet.
FBC Securities says the ZSE is Zimbabwe's main exchange. But its performance lately has more to do with inflation and speculation. It's not as much about companies actually growing.
The VFEX could be an option for investors who want stability. But first, the overall economy needs to improve, and Zimbabwe also needs more foreign investment.
The ZSE created new indexes on January 1, 2025. An index measures a group of stocks. The Top 10 Index looks at the biggest companies on the ZSE. It shows how the whole market is performing.
There are also indexes for the top 15 and top 25 companies. Medium and small companies have their indexes, too. This lets investors see how companies of different sizes are doing.
The indexes include some companies listed on the Victoria Falls Stock Exchange (VFEX). VFEX uses US dollars instead of Zimbabwean money.
ZSE's CEO, Justin Bgoni, says the indexes will change every few months. The top indexes include big names like Econet and Delta, while the medium and small indexes include lesser-known firms.
The ZSE did well in 2024. Its value rose 18%. The main index jumped 118% by the end of the year. Investors bought stocks to protect against inflation. They liked companies with real assets.
But not all companies did well. Smaller ones had a harder time. They didn't earn as much money, and there were also more rules to follow.
The VFEX attracted companies that wanted to avoid currency risks. They could get paid in foreign money there. However, there weren't a huge number of trades on the VFEX yet.
FBC Securities says the ZSE is Zimbabwe's main exchange. But its performance lately has more to do with inflation and speculation. It's not as much about companies actually growing.
The VFEX could be an option for investors who want stability. But first, the overall economy needs to improve, and Zimbabwe also needs more foreign investment.
