2022 was a year of highs and lows on the ZSE. A massive bull run characterised the early part of the year before the regulation came in to cool the overheating market. Along the way, we saw many new developments and additions to the capital market offerings. Let’s look at the stories that made headlines in 2022.
We took investors through the process of starting a C-Trade investment club.
The first month of the year closed with a 12.05% jump in the market.
ZSE direct added an application for iOS users.
News of the Datvest Modified Consumer Staples ETF brought a 3rd ETF to the market
The ZSE rallied 26.39% in the second month of the year
With the widening ETF options, we discussed ETF investing
We welcomed a book on ZSE investing stories by Albert Nangara
We looked at company investing calendars to understand important dates
A marginal drop in the ZSE characterised the 3rd month of the year
We took a brief look at signs that a company makes a good investment
For the new investors, we discussed the case for ETF investing
Lloyd Capital launched a digital trading platform for capital markets
The bulls ran riot in April, nearly doubling the market value
Dark clouds gathered as the ZSE received additional attention in the midst of economic pressures
We compared unit trusts to other investment options
We took a look at the CFI business empire after its return to trading
Economic measures to stabilise the economy aimed the ZSE, among other factors
Legislation was brought in that tightened things for investors
The market tumbled with the increased pressure
There was some backtracking on changes made to the ZSE rules
The market collapse forced us to look at ZSE returns adjusted for other economic indicators
Capital markets Players Finsec announced the launch of Options and Futures markets
Morgan & Co gave Zimbabweans a 4th ETF option
The ZSE lost further value as investors digested new regulation
Not to be deterred, new developments were announced in capital markets.
Cass Saddle’s Agriculture Index ETF made it 5 ETFs in the market
July was another month in the red for the ZSE
We looked at the practical aspects of the Finsec Options market
And we did the same for the Futures market
A look over at Unit Trusts showed they, too, were affected by regulation
A fourth month in the red heaped misery on investors
VFEX announced plans to offer a direct investment method
C-Trade added a much-needed demo mode in the form of a Fantasy game
The Capital Markets high schools quiz kicked off
We welcomed another Zimbabwean investing book by Alfonce Maketo
ZSE showed signs of recovery
We took stock of the carnage on the markets and what we could learn from it as investors
We finally received confirmation of the much-awaited listing of a Real Estate Investment trust
SECZim registrations provided some interesting investment prospects
ZSE received a small uptick while more companies announced plans to move to the Victoria Falls Stock Exchange
VFEX released the Contracts for Differences (CFD) listing rules which we had a look through
November saw the ZSE slip
This brings us to December, when Innscor and its associated companies Simbisa, National Foods and Axia plan to move to VFEX and join another associate Padenga.
The market looked a lot more positive than in recent months. Innscor leads the list of 33 gainers with excitement over its VFEX switch doubling investor value. Axia, one of the biggest casualties of regulation, brought some cheer to investors as it geared up for its VFEX move. First Capital Bank and seasoned performer Delta brought investors over 50% gain in the month. Newly listed Tigere REIT jumped 46.37% in its maiden month.
Mashonaland Holdings claimed the unwanted title of the top loser. After rocketing to value around the mid-20s, assuming entity ZB made an offer to minority shareholders of $8 per share, which brought it tumbling. The remaining 13 losers managed to keep losses below 20%. The market also had 3 non-movers in December.
In what can only be described as an eventful year on the ZSE, ZECO gave investors the most to smile about, delivering over 5 times on investor money. Mashonaland Holdings’ late rally also delivered over 5 times provided investors pushed the exit button. Innscor and Axia waved goodbye to the ZSE, offering investors 2 times their opening investment. In total, 34 counters were positive for the 12 months.
Fourteen companies lost investors’ money in 2022. BridgeFort Capital Class A shares continued a massive slide that has made it a cautionary tale to investors in Zimbabwe. Popular heavyweight Econet made the bottom 10, shrinking investor value by 15 % in the year.
All ETFs managed to close the year in positive territory. Morgan & Co’s Multi-Sector ETF did the best. Old Mutual Top 10 ETF showed the smallest growth reflecting the biggest impact of regulation was on the heavyweights in the market. The Tigere REIT started positively.
ETF + REIT
Over to the nation’s west, the VFEX had a great story in SeedCo International. Bearing that these returns were in US Dollars, the performance is nothing short of impressive. The Nedbank Depositary receipt and Padenga holdings performed very well. Caledonia Depositary receipts held steady, while Simbisa and National Foods joined the exchange in December. Bindura Nickel Corporation lost considerable value for investors in 2022.
To put the Zimbabwean dollar-denominated returns on ZSE shares, ETFs and REITs into perspective, we can look at key economic indicators for guidance. ZimStat CPI inflation was 243% for the year; only 5 counters and no ETFs managed to beat this. The official exchange rate growth was 508.8%; only ZECO and Mashonaland Holdings beat this in the year. For those who consider it, the Parallel Market Exchange rate grew by 309.9%.
And that wraps up what was an exciting year in Zimbabwean Capital markets. Through it all, investors were given many opportunities to learn lessons which, provided we are still standing, will make us better investors going forward—all the best for 2023.