Week 10 Trading Update (4th to 7th March 2019)
Economy, Opinion

Week 1 and 2 of March 2019 trading eclipsed the total turnover recorded in February signalling a bullish run for trading on the Lusaka Securities Exchange. Turnover was 12% stronger as at week 2 increasing to K 512 thousand thus far.

Bond Activity

During the week, bonds of total face value of K97,654,000 were transacted in 26 trades, yielding a market value sales of K58,902,000.

Companies Traded

Companies traded during the week included

  • AEL Zambia
  • Airtel Zambia
  • BAT Zambia
  • Cavmont Capital Holdings
  • CEC Zambia
  • CEC Africa on the quoted tier
  • Standard Chartered Bank
  • ZANACO Bank

Weekly Trading Diary

Monday 4th

  • 21 trades recorded on the day
  • 115,745 shares were transacted, yielding a market turnover of K217,475.
  • A share price gain of K0.01 was posted in CEC Zambia (with shares traded at a share price of at K1.72 per share), while Standard Chartered Bank recorded a loss of K0.04.
  • Trading activity was also recorded in AEL Zambia, Airtel Zambia, and CEC Africa on the quoted tier.
  • 13,000 CEC Africa shares traded on the Quoted tier, generating a total turnover of K2,600.
  • The LuSE All Share Index (LASI) closed at 5,781.44 points down by 0.21% from its previous close of 5,793.56 points.
  • The market closed on a capitalization of K62,710,064,432 including Shoprite Holdings and K28,470,858,452 excluding Shoprite Holdings.

Tuesday 5th

  • 12,320 shares traded on the LuSE Main Tier today, of which CEC contributed 87% to the total shares traded, trading 10,702 shares at a share price of at K1.70 per share.
  • A total turnover of K38,830 (USD3,198) was generated on the LuSE today, of which Airtel contributed 45%
  • The LuSE ASI closed at 5,773.39 points, down 0.14% from the previous close of 5,781.44 points.
  • Year-to-date, the LUSE ALSI is up 10.16% in local currency terms, & up 9.25% in USD currency terms

Wednesday 6th

  • 62 trades recorded on the day
  • 190,087 shares were transacted, yielding a market turnover of K217,662.
  • A share price gain of K0.04 was posted in Standard Chartered Bank, while CEC Zambia recorded a loss of K0.02.
  • Trading activity was also recorded in BAT Zambia, CEC Africa and Cavmont Capital Holdings on the quoted tier.
  • CEC contributed 83% to the total shares traded, trading 95,717 shares at a share price of at K1.68 per share
  • 74,709 CEC Africa shares traded on the Quoted tier, generating a total turnover of K14,941
  • The LuSE All Share Index (LASI) closed at 5,781.61 points up by 0.14% from its previous close of 5,773.39 points.
  • The market closed on a capitalization of K62,710,783,209 including Shoprite Holdings and K28,471,577,229 excluding Shoprite Holdings.

Thursday 7th

  • 8 trades recorded on the last day of trading for week 10
  • 17,687 shares were transacted, yielding a market turnover of K17,212.
  • Trading activity was recorded in CEC Zambia, Standard Chartered and Zanaco (which contributed most of the trades).
  • The LuSE All Share Index (LASI) maintained its previous close of 5,781.61 points as were no price movements.
  • The market remained on a capitalization of K62,710,783,209 including Shoprite Holdings and K28,471,577,229 excluding Shoprite Holdings

Financial Insight Weekly Analysis

In a month that will see 2 four day trading weeks, the first of the two showed evidence that March was starting on a high note. With the number of trades standing at 15% less than what was traded in February, March trades will eclipse the total number of trades recorded in the previous month. With turnover already being higher, this signals confidence returning to the exchange as traders seek out value investments.

Week 10 Company trades: Source Financial Insight Analytics

Notably, there was a share price gain of K0.04 in the Standard Chartered Bank security while the CEC Zambia and Lafarge securities recorded a losses of 0.03 and 0.01 respectively.

CEC Zambia dominated trading with 59 trades recorded for the week that generated K355 thousand in turnover. The least traded security was BAT Zambia with only 100 shares traded in one transaction that generated K200. The Chart shows the trading activities of all the companies during week 10 of 2019.

 

Important Announcements

BATA Plc Announces Abridged Financials: 9% Increase in Revenue

BATA Plc recorded a turnover for the year of K 153,803,812 which is an increase of 9 % against K 141,249,414 which was achieved the previous years. Profit before tax achieved was K 25,022,888, which is an increase of 49 % against K 16,738,834 achieved in 2017.

Airtel Trading Statement: EPS Lower

In accordance with the Lusaka Securities Exchange Listings Requirements, the Board of Directors of Airtel Networks Zambia Plc”) advised its Shareholders of the Company that the Earnings Per Share for the year ended 31December 2018 is expected to be approximately 82% lower than the year ended 31 December 2017. The drop in the EPS is primarily attributed to currency depreciation in the last quarter of the financial year which have had a significant impact on the Company’s profitability.

CEC Publishes Results for 2018: 19.2% increase in Revenue

The Company posted positive results, ensuring shareholders continue to earn a return through dividend and sustained share price growth. Revenue increased by 8% in United States Dollar (USD) terms and 19% in Zambian Kwacha (ZMW) terms from ZMW3,697 million in 2017 to ZMW4,405 million mainly on account of increased energy consumption in Zambia, consistent power supply to the DRC market and depreciation of the Kwacha against the Dollar. The Company has recorded a profit after tax of ZMW584 million compared to ZMW459 million in 2017. This represented an increase of 27.2% in ZMW and 15.5% in USD. Included in the financial results is an exceptional item; being the gain on disposal of shares in CEC Liquid Telecom amounting to ZMW115.8 million (USD11.1 million).

 

All data used in the preparation of this report is from Lusaka Securities Exchange and Stockbrokers Zambia.

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