Turnover from trading on the Lusaka Securities and Exchange fell by 50% in April 2019 compared to the previous month.
The turnover recorded in April reduced to K2.1 million from K 4.3 million recorded in the previous month. The exchange saw 1.5 million shares being traded during the month of April from 1.8 million in March. This represents an 18% reduction in volume traded. This is the second lowest performance of the LuSE in 2019 with the weakest performance being recorded in February.
“April was forecast to be a resurgent month however following the weakening of the purchasing managers index for March, analysts skepticism grew as to how well the exchange would perform following signals of weakened purchasing activity“, according to Financial Analysts at Financial Insight. “The PMI is not usually correlated to buyers and sellers activity on the LuSE. However, it does offer some insight into possible behavior of the market“.
April also saw a 2.45% reduction in LuSE All share index. Following its peak in February, the index has been on the descent losing 8.03%. This means that the collective number of companies that make up the leaders and laggers have been experiencing shrinking share prices.