VFEX market capitalisation hits US$3.85bn

Surging demand for United States dollar-denominated assets has pushed the Victoria Falls Stock Exchange (VFEX) to a market capitalisation of US$3.85 billion, driven by sharp price gains, major listings and a continued shift in investor preference away from the Zimbabwe Stock Exchange (ZSE).

According to stockbrokers IH Securities' March 2026 Monthly Snapshot, VFEX recorded an 11.9 percent increase in market capitalisation during the month, while its All-Share Index surged 14.5 percent to close at 249.86 points.

In contrast, the ZSE remained largely subdued over the same period, highlighting a growing divergence between the two exchanges.

"This divergence reflects a structural shift in investor preference towards the VFEX, which offers hard currency trading, relatively stable valuations and exposure to export-driven earnings," IH Securities said.

The rally on the VFEX has been largely driven by heavyweight counters, with Padenga Holdings emerging as a key contributor.

Padenga's stock surged 44.07 percent during the month, rising to US112.56 cents from US78.13 cents, making it the top-performing stock on the bourse. The surge pushed the company's market capitalisation beyond US$1 billion, marking a significant milestone.

Analysts attribute Padenga's strong performance to growing investor confidence in its strategic pivot towards gold production, positioning the company to benefit from firm global commodity prices and export earnings.

The VFEX's growth trajectory has also been bolstered by the recent listing of Econet InfraCo, a US$1 billion infrastructure and digital assets entity that has significantly enhanced the exchange's depth.

IH Securities described the listing as a pivotal development, noting that it introduces new sector exposure aligned with global investment trends favouring infrastructure, technology and data-driven businesses.

"Its inclusion not only deepens the market but also enhances the VFEX's appeal to a broader investor base seeking diversified USD-denominated opportunities," the firm said.

Trading activity on the VFEX strengthened during the period, with total value traded rising 41 percent to approximately US$15.17 million, signalling increased participation in monetary terms.

However, trading volumes declined by 27.07 percent to 23.99 million shares, suggesting that the rally is being driven more by price appreciation than broad-based accumulation.

Market activity remained concentrated in select counters, with investors focusing on fundamentally strong companies offering earnings visibility and currency protection.

Innscor Africa led in value traded at US$7.52 million, reflecting sustained institutional interest. The group recently expanded its agro-industrial footprint after acquiring a 27 percent stake in Tanganda Tea Company through its subsidiary, Rutanhi Beverages, following an US$8 million rights offer.

Innscor's latest financial results show it invested more than US$62 million in capital expenditure as at December 31, 2025, underlining an aggressive expansion strategy across its operations.

Analysts say such capital allocation signals long-term growth intent, reinforcing investor appetite for stocks with clear expansion plans and resilient earnings.

The selective trading pattern on the VFEX aligns with a broader rerating trend, as investors increasingly pay a premium for high-quality counters anchored on hard currency revenues.