Zimbabwe Stock Exchange Posts Mixed Results as Agro Stocks Lead Gains

Zimbabwe’s stock market posts mixed results as agricultural and insurance stocks rise while property and retail counters struggle amid tight monetary conditions in 2025 (image source)

HARARE – The Zimbabwe Stock Exchange (ZSE) closed the week ending 20 October 2025 with mixed performance across sectors, as investors shifted focus toward agriculture and insurance counters amid expectations of a favorable rainy season and stable macroeconomic indicators.

The All-Share Index rose marginally by 0.35%, while the Top 10 Index gained 0.45%, reflecting cautious optimism among institutional investors. The market’s movement was largely driven by gains in agro-industrial stocks, particularly SeedCo Limited (+6.61%) and Hippo Valley Estates (+15%), which benefited from bullish forecasts for the 2025/26 farming season. “Agriculture is regaining investor confidence, especially with El Niño risks subsiding,” said Ranga Moyo, a stockbroker at Imara Capital. “SeedCo and Hippo Valley are well-positioned to capitalize on increased planting activity and export demand.”

SeedCo, Zimbabwe’s leading seed producer, reported strong half-year earnings, citing increased uptake of hybrid maize and wheat seed varieties. Hippo Valley Estates, a major sugar producer, also posted improved revenue driven by higher global sugar prices and expanded irrigation capacity.

Insurance stocks also performed well, with First Mutual Life climbing 8.08% on the back of improved underwriting margins and a growing client base. Analysts say the sector is benefiting from increased demand for life and health cover, particularly among middle-income earners. “Insurance is becoming a defensive play in this market,” said Moyo. “Investors are looking for stability and long-term value.”

However, the gains were offset by losses in property and retail counters. Mashonaland Holdings, a commercial real estate firm, shed 7.19%, while Turnall Holdings, a building materials manufacturer, plunged 42.68% following a profit warning and weak consumer demand. The retail sector continues to face headwinds from high interest rates, currency volatility, and subdued disposable incomes. Turnall’s decline was attributed to falling sales volumes and rising input costs, particularly for cement and asbestos products. “The consumer sector remains under pressure,” said economist Dr. Nyasha Kaseke. “Inflation and tight monetary policy are squeezing household budgets.”

Exchange-traded funds (ETFs) remained flat, with minimal movement in CSAG and DMCS securities. Market liquidity was moderate, with daily turnover averaging ZWL$1.2 billion, mostly concentrated in blue-chip stocks.

The ZSE’s performance reflects broader macroeconomic trends, including the Reserve Bank of Zimbabwe’s (RBZ) continued efforts to stabilize the Zimbabwe Gold (ZiG) currency. The central bank has maintained a tight monetary stance, keeping interest rates elevated to curb inflation and support the ZiG’s value. “The RBZ’s policy is anchoring expectations, but it’s also dampening speculative activity,” said Kaseke.

Looking ahead, market participants are watching for third-quarter earnings reports and potential policy shifts in the 2026 national budget. The ZSE is also preparing to launch new sectoral indices to improve market transparency and attract foreign portfolio investors.