Staff Writer 
INFORMATION technology (IT) and consumer staples stocks are expected to anchor the growth of the local equities markets this year, leveraging their cash-generating capacity and dominant market positions, analysts say.
Authorities have forecast six percent economic growth for 2025, although challenges such as delayed rains, unprepared farmers, underfunded energy infrastructure, and weak investor confidence raise doubts about these projections.
This comes as market watchers have expressed a pessimistic view that trading activity on the Victoria Falls Stock Exchange (VFEX) and Zimbabwe Stock Exchange (ZSE) will be limited due to the ongoing tightening of ZiG liquidity and the lack of US dollars in the economy.
“For 2025, we overweight consumer staples for their defensiveness in tough business environments, and ICT for technological advancement potential,” Fincent Securities stated in its 2025 outlook report.
“The earnings outlook remains uncertain, and stock market investors are expected to focus on defensive stocks, particularly those of companies that are well-positioned to weather the storm and emerge resilient.
Forex earnings will play a crucial role, making exporting companies and those with access to informal market channels likely to remain popular in 2025, as they were in 2024.”
Consumer staples stocks are shares of companies that sell essential products and services that people need every day, such as OK Zimbabwe, Meikles, Tanganda, Ariston, Afdis, Hippo Valley, and BAT, among others.
The securities firm’s top picks for the year include Delta Corporation, Innscor Africa, Econet Wireless Zimbabwe, Simbisa Brands, SeedCo, FCB and Tigere REITs.
“In 2025, investors should strategically time bull markets to secure profits and take advantage of bear markets to acquire undervalued stocks at discounted prices.
“Although the economy is largely expected to grow, only producers of basics (Innscor) and common daily products (like beer from Delta) have a fighting chance, although volumes might still be depressed. More than any fundamental reasons, an overweight on this sector is justified because these are bell-weather stocks looking very cheap compared to historic US$ valuations,” Fincent Securities noted.
Companies such as Delta, Innscor Africa, and Simbisa have witnessed significant volume recoveries due to expansion investments in recent years. However, many consumer staples counters continue to face the growing threat of competition from informal players.
On the technology front, Econet Wireless is expected to leverage assets transferred from Ecocash Holdings to dominate the fintech space, alongside its established infrastructure and mature voice business.
In its third-quarter trading update for the period ending November 30, 2024, Econet attributed a 69 percent surge in revenue to a 42 percent increase in mobile network operations revenue and the acquisition of financial technology businesses.
Prospects appear dim for financial and industrial indices.
“Hyperinflation is bad for all businesses, but financials are some of the worst affected due to balance sheets anchored by inflation-prone interest-earning assets,” Fincent Securities said, adding that the industrial sector will endure a tough year due to a lack of competitiveness both locally and in export markets.
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