The Securities and Exchange Commission of Zimbabwe (SecZim) has reported that nine of the 22 licensed securities firms traded in the red during the quarter ended December 2025.
“Out of the twenty-two operating securities dealing firms, thirteen reported positive earnings, while the remaining nine firms failed to break even during the quarter ended 31 December 2025,” the regulator said in its latest quarterly review.
SecZim said: “…pursuant to the implementation of the revised capital adequacy framework, the sector’s capital position for the quarter…stood at 5.14x against a minimum requirement of 1.00x.”
It said twenty out of twenty-two brokerage firms were adequately capitalised during the period.
“During the…quarter, the securities dealing industry’s aggregate earnings stood at ZWG5.55 million, representing a substantial decline of 87.66 percent from ZWG44.97 million recorded in the previous quarter,” SecZim added.
The authority said trading activity on the Zimbabwe Stock Exchange (ZSE) weakened significantly during the quarter, with equities turnover falling by 42.27 percent to ZiG1.12 billion, down from ZiG1.95 billion in the third quarter.
In contrast, the Financial Securities Exchange recorded modest growth, posting 352 trades valued at ZiG7 million, up from ZiG5.22 million previously.
Despite subdued activity, market performance remained firm.
The ZSE All Share Index rose 31.92 percent to close at 277.86 points, while the Victoria Falls Stock Exchange (VFEX) All Share Index gained 17.43 percent to 177.12 points.
“Victoria Falls Stock Exchange turnover registered a quarterly growth of 28 percent to US$21.48 million… from US$16.79 million,” SecZim said, adding that the ZSE recorded “a 38 percent quarterly drop in turnover… to US$45.42 million,” partly supported by a negotiated block trade in Econet shares.
It said pension funds dominated equity purchases on the capital markets during the quarter, accounting for nearly half of all shares acquired.
SecZim said pension funds were responsible for 45.36 percent of total purchases, equivalent to about ZiG540.09 million, out of the ZiG1.19 billion worth of trades settled through the Chengetedzai Depository Company and the Zimbabwe Stock Exchange (ZSE) Depository.
“Pension funds purchased 45.36 percent (ZiG540.09 million) of the total shares, followed by corporations, which accounted for 24.42 percent (ZiG290.80 million),” the regulator said.
Individual investors remained relatively small players on the buying side, accounting for 6.53 percent of total purchases, equivalent to ZiG77.74 million worth of shares.
On the selling side, other financial institutions led disposals during the period under review.
SecZim noted that the institutions “offloaded shares worth ZiG515.32 million, equivalent to 43.28 percent of total sales,” while individual investors sold equities valued at more than ZiG79.5 million.
SecZim also highlighted growing participation through digital trading platforms, as retail investors increasingly turn to online channels.
“A total of 37,982 investors had active accounts on online trading platforms, C-Trade and ZSE Direct, marking a 3.36 percent increase from 36,747 recorded in the previous quarter,” it said.
These platforms recorded buy trades worth ZiG4.08 million and sell trades totalling ZiG3.38 million during the quarter.
However, performance in the securities dealing sector deteriorated sharply.
Aggregate earnings plunged to ZiG5.55 million, representing an 87.66 percent decline from ZiG44.97 million in the prior quarter. – TML