In the second ‘4 day week’ of the month (due to the Easter weekend), trading for week 4 resumed with the resurgence and gusto of the previous week. However, turnover and trading volumes were down by 13% and 36% respectively. The week now ranked second highest for April as the penultimate week for the month.
Equity Market Activity
In the week ended 26th April 2019, a total of 495,626 shares were transacted in 153 trades, yielding a market turnover of K853,012, according to Lusaka Securities and Exchange Weekly Report. In addition, a share price gain of K1.99 was recorded in AEL Zambia while SCBL and ZSUG recorded losses of K0.02 and K0.19 respectively, CEC Zambia, Lafarge Zambia, National Breweries, PUMA, Real Estate Investments Zambia, and ZANACO Bank recorded a loss of K0.01 each. Furthermore, trading activity was also recoded BAT Zambia, Zambeef, and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) closed at 5,469.10 points. The market closed on a capitalization of K61,567,249,885 including Shoprite Holdings and K27,328,043,905 excluding Shoprite Holdings.
Bond Market Activity
During the week, bonds of total face value of K49,153,000 were transacted in 7 trades, yielding a market value sales of K33,445,000.
Weekly Stock Market Diary
Tuesday 23
- After the Easter weekend, the market opened with 53 trades recorded on the day
- 49,469 shares were transacted, resulting in a market turnover of K98,712.
- 42% of Total traded shares were in CEC Zambia trading 21,200 shares at share price of 51 per share
- 21% of Total Turnover was in AEL Zambia
- Share price gains of K2.00 and K0.08 were recorded in AEL Zambia and CEC Zambia while Lafarge Zambia, Standard Chartered Bank and Zambian Breweries recorded losses of K0.01, K0.02 and K0.01 respectively.
- CCAF traded 11,000 shares on the Quoted tier, generating a total turnover of K2,200.
- The LuSE All Share Index (LASI) closed at 5,522.91 points up by 0.57% from its previous close of 5,491.65 points.
- The market closed on a capitalization of K61,791,025,069 including Shoprite Holdings and K27,551,819,089 excluding Shoprite Holdings.
Wednesday 24
- 17 trades were recorded at mid-week
- 14,259 shares were transacted, yielding a market turnover of K27,516.
- Share price losses of K0.01 and K0.08 were recorded in AEL Zambia and CEC Zambia.
- 13,973 CEC Zambia shares were traded at K1.43 contributing 98% to the total shares traded on the day
- Trading activity was also recorded in Zambeef.
- The LuSE All Share Index (LASI) closed at 5,491.60 points down by 0.57% from its previous close of 5,522.91 points.
- The market closed on a capitalization of K61,660,820,955 including Shoprite Holdings and K27,421,614,975 excluding Shoprite Holdings.
Thursday 25
- A total turnover of K726.695 (USD57,446) was generated on the LuSE, of which CEC contributed 51%.
- 421,855 shares traded on the LuSE Main Tier today, of which CEC Zambia contributed 62% to the total shares traded, trading 261,511 shares at share price of K1.42 per share.
- The LuSE ASI closed at 5,482.73 points, down 0.16% from the previous close of 5,491.60 points. Year-to-date, the LUSE ALSI is up 4.46% in local currency terms, & up 0.57% in USD currency terms
Friday 26
- In the final day of trading for Week 17, 14 trades recorded on the day,
- 10,042 shares were transacted, yielding a market turnover of K14,714, of which CEC contributed 58% to the total shares traded, trading 5,800 shares at share price of 42 per share.
- A share price gain of K0.01 was recorded Zambian Breweries while Lafarge Zambia and Zambia Sugar recorded losses of K0.01 and K0.19 respectively.
- The LuSE All Share Index (LASI) closed the week at 5,469.10 points down by 0.25% from its previous close of 5,482.73 points.
- The market closed on a capitalization of K61,567,249,885 including Shoprite Holdings and K27,328,043,905 excluding Shoprite Holdings.
Financial Insight Analysis
Week 4 of April is poised to be the second highest week of trading in terms of turnover and number of shares traded with only 2 days of trading remaining in Week 5 for the month.
CEC Zambia remains the highest traded security for a 4th consecutive week. Although the stock lost 1 ngwee in its share price (amalgamated average), the security continues to trade above its lowest price of K1.33 over the last 12 months. 83 trades around the security were closed during the week, indicative of an attractive security whose price to book value is between 1 and 3.
Other company securities that lost share price value included Lafarge Zambia, Standard Chartered Bank and Zambian Breweries. Lafarge stood out as its share price dipped to its lowest in 12 months at K1.97 following a 2 ngwee loss in price during the week.
A closer look at the offer and bid prices for the securities that lost share price, Lafarge settled at the lowest bargained bid when compared to securities with as must as 56 ngwee being shaved off the offer price. This indicates that there are not enough buyers on the market for available securities. Liquidity challenges are among the reasons for low activity overall.
BAT Zambia was the only security with a price to book ratio above 20. Zambian Breweries market capitalisation was the highest of all the 12 companies that traded during the week.
Important Announcements
IDC Settles Loan Facility with ZCCM IH
On 2 April 2018, ZCCM Investments Holdings Plc (“ZCCM-IH” or the “Company”) and the Industrial Development Corporation Limited (“IDC”), majority Shareholder, entered into a related party transaction through a Loan Facility Agreement whereby ZCCM-IH advanced a loan amount of US$19,000,000 to the IDC with a maturity period of 12 months. ZCCM-IH wishes to announce that the IDC has fully settled the principal and interest amounts owed to ZCCM-IH. The payment was made on 2 April 2019 in line with the Loan Facility Agreement between the parties.