The delisting of telecoms giant Econet Wireless Zimbabwe Limited is expected to weigh on trading activity on the Zimbabwe Stock Exchange, even as exchange operator Zimbabwe Stock Exchange Holdings Limited reported strong revenue growth for the first quarter of 2026.

In its trading update for the period ended March 31, ZSE Holdings said the departure of one of the market’s most influential counters would likely dampen turnover and investor sentiment in the near term, marking a significant structural shift for Zimbabwe’s equities market.

“The departure of a major market constituent is expected to temporarily dampen activity on the ZSE,” management said, acknowledging the immediate impact of the exit while expressing confidence in the Group’s diversified exchange model.

Despite the market adjustment, ZSE Holdings posted a 21 percent increase in revenue to US$2,205,535, supported by rising investor participation and improved macroeconomic stability during the opening quarter of the year.

Management attributed the performance to strengthening economic fundamentals, including lower inflation and exchange rate stability, which helped restore confidence among investors and stimulate trading across both the ZSE and the Victoria Falls Stock Exchange.

“The Group delivered a solid performance across both exchanges, supported by improving macroeconomic fundamentals and increased investor participation,” the company said.

The ZSE remained the Group’s primary revenue contributor, generating US$1,648,457, while the VFEX contributed US$557,078, reinforcing the offshore-focused exchange’s growing role within the Group’s earnings mix.

Trading activity rebounded sharply during the period, with aggregate turnover on the ZSE rising by 416.83 percent compared to the previous quarter, signalling renewed investor positioning following months of subdued market activity.

ZSE Holdings said the impact of the Econet delisting was partly mitigated by new listings on the VFEX, including the Pfuma Fund real estate investment trust and infrastructure firm Econet InfraCo Limited, which helped maintain the total number of listed entities across both exchanges at 66.

Management noted that the VFEX continues to provide balance to the Group’s operations, benefiting from stronger liquidity and sustained listing interest.

“The VFEX is projected to sustain robust momentum supported by new listings and improved liquidity, acting as a natural hedge for overall Group performance,” the update said.

Financially, the Group strengthened its balance sheet during the quarter, with total assets growing by 22 percent. Total liabilities rose by 64 percent over the same period, reflecting expansion in operations and ongoing investment activity.

The reporting period coincided with improving macroeconomic conditions, including a decline in ZiG inflation to 3.8 percent in February and relative exchange rate stability, developments the Group said enhanced investor confidence and market participation.

However, ZSE Holdings flagged structural vulnerabilities within Zimbabwe’s equities market, particularly concentration risk, with the top five listed companies accounting for 93.8 percent of total value traded during the quarter.

Looking ahead, the exchange operator said it will continue prioritising innovation, digital transformation and product diversification as it seeks to deepen capital markets participation and broaden investment opportunities.

“We remain focused on revitalising the dormant debt market and unlocking new avenues for inclusive capital market growth,” management said.

Shares in ZSE Holdings were trading at 100.01 ZiG cents as of May 13, reflecting a 9.08 percent decline on the day.