ZSE attains a considerable increase in participation by retail investors

Zimbabwe Stock Exchange (ZSE) has noted a significant growth in retail participation in terms of number, value and volume of trades.

The growth in retail investors also came following the launch of ZSE Direct an online platform in September last year.

There has been a substantial increase in participation by retail investors on the stock exchange, whose contribution to liquidity and resilience is regarded important.

Figures show a significant increase in number of trades on the ZSE as well as value and volume traded direct between September 2020 and March 2021, which recorded the highest trades.

ZSE Chief Executive Officer Justin Bgoni said the Small Cap (Index) has done very well so far and they believe it is because of the retail investors as they find these stocks more affordable.

We will continue looking at measures that help increase retail participation as well as demystify the exchange as elitist, which has contributed to low financial inclusion in capital markets.

The ZSE believes there are still a lot of companies that can list on the bourse; the climate is now getting better, Bgoni said.

Number of trades were at 139 during launch month and ballooned to 3 000 in March this year. The increased retail participation has also spurred the Small Cap Index, making it the biggest year-to-date gainer at 260 percent.

Currently, delays in opening a CSD account, which is taking about two to three weeks, as well as the settlement time are among the key challenges that deter retail participation.

However, various measures are being put in place to address the challenges and make the bourse the preferred investment destination.





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