Week 18 came with a combination of the epilogue of April and the beginning of May with the former closing off as the 3rd best month of trading over the four months recorded thus far.
Equity Market Activity
In the week ended 03rd May 2019, a total of 118,024 shares were transacted in 140 trades, yielding a market turnover of K167,703. CEC Zambia, Madison Financial Services Group, Standard Chartered Bank Limited and Zanaco Bank recorded losses of K K0.02 , K0.05, K0.03 and K0.02 respectively. Trading activity was also recoded PUMA, Zambian Breweries Limited, Zambeef, Zambia Sugar and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) closed at 5,441.72 points. The market closed on a capitalization of K61,45 billion including Shoprite Holdings and K27,21 billion excluding Shoprite Holdings.
Bond Market Activity
During the week, bonds of total face value of K94,156,000 were transacted in 7 trades, yielding a market value sales of K66,586,000.
Weekly Stock Market Diary
Monday 29th April
- The market opened the week with 45 trades recorded on the day,
- 25,640 shares were transacted, resulting in a market turnover of K30,169.
- A share price gain K0.02 was recorded in Lafarge while Copperbelt Energy Corporation and Standard Chartered Bank recorded a loss of K0.01 each.
- Trading activity was also recorded in Zambia Breweries, Zambia Sugar and CEC Africa on the quoted tier.
- The LuSE All Share Index closed at 5,462.15 points down by 0.13% from its previous close of 5,469.10 points.
- The market closed on a capitalization of K61,538,330,877 including Shoprite Holdings and K27,299,124,897 excluding Shoprite Holdings.
Tuesday 30th April
- 3 trades recorded on the day, 11,445 shares were transacted, yielding a market turnover of K16,024.
- A share price loss of K0.01 was recorded in CEC.
- The LuSE All Share Index (LASI) closed at 5,458.24 points down by 0.07% from its previous close of 5,462.15 points.
- The market closed on a capitalization of K61,522,080,871 including Shoprite Holdings and K27,282,874,891 excluding Shoprite Holdings.
Wednesday 1st May
No trades recorded as Stock Market was closed.
Thursday 2nd May
- The Month of May opened with 16 trades recorded on the day
- 55,900 shares were transacted, resulting in a market turnover of K79,252.
- A share price loss of K0.05 was recorded in Madison Financial Services.
- Trading activity was recorded Copperbelt Energy Corporation, Lafarge, Zambia Breweries and CEC Africa on the quoted tier.
- The LuSE All Share Index closed at 5,457.64 points down by 0.01% from its previous close of 5,458.24 points.
- The market closed on a capitalization of K61,519,580,871 including Shoprite Holdings and K27,280,374,891 excluding Shoprite Holdings.
Friday 3rd May
- In the last day of trading in the first week of May, 76 trades were recorded
- 25,039 shares were transacted, resulting in a market turnover of K42,258.
- Lafarge Holcim, Standard Chartered Bank and Zanaco Bank recorded a loss of K0.02 each while CEC Africa which had 3518 shares traded with a turnover of K668 on the day, recorded a loss of K0.01.
- Trading activity was also recorded AEL Zambia, CEC Zambia (contributed 37.5% to total turnover at K1.40 per share) and Zambian Breweries.
- The LuSE All Share Index (LASI) closed at 5,441.72 points down by 0.29% from its previous close of 5,457.64 points. Year-to-date, the LUSE ALSI is up 3.68% in local currency terms, & down 4.19% in USD currency terms
- The market closed on a capitalization of K61,453,365,472 including Shoprite Holdings and K27,214,159,492 excluding Shoprite Holdings.
Financial Insight Weekly Analysis
Although week 5 of April only had two days, it was still enough for traders on the LuSE to contribute K46,000+ worth of trades on the exchange.
CEC Zambia’s security continued on its run as the most traded security recording the highest turnover and volume of shares traded during the week. Lafarge and AEL Mining were a distant second and third respectively.
However, although AEL Mining was ranked 3rd in terms of trades, it remains the strongest stock in terms of earnings per share for value seeking investors. Currently selling at just over K24 per share, the security was the most expensive stock by comparison.
This represented a 95% and 93% drop in the turnover and volume of shares traded respectively. This was attributed to the limited amount of time as the clock wound down for April. April 2019 closed with just over K2.1 million in turnover and 1.5 million in shares traded during the month.
With the LuSE All Share Index (LASI) closing at 5,458.24 points down by 0.07% from its previous close of 5,462.15 points from Thursday, the downward trend has continued with the index losing 8.36% since peaking in February 2019.
Important Announcements
African Banking Corporation Zambia – Caution to Notes Holders
In accordance with the listing requirements, as set out by the Lusaka Securities Exchange Plc (“LuSE”) and the Securities Act No. 41 of 2016 and with reference to the cautionary announcement issued by Equity Group Holdings (“EGH”) Plc authorised by the Capital Market Authority (“CAM”) of Kenya on 30th April 2019.
The Board of Directors of African Banking Corporation Zambia Limited (“the Board”) wishes to inform holders of the listed notes, as well as other market participants that Atlas Mara Limited (“the Group”) has agreed to enter into a binding term sheet with EGH Plc for a share swap to exchange certain banking assets which include African Banking Corporation Zambia Limited.
ZAMEFA – Higher EPS thanks to Increased Sales and Weaker Kwacha
In accordance with the Lusaka Securities Exchange (“LuSE”) listing requirements the Board of Directors of Zamefa (the “Board”) advise the Shareholders that for the six-month period ended 31st March 2019, the basic earnings per share (“EPS’) and head line earnings per share (“HEPS”) are both expected to be between 190% to 210% higher than those of the corresponding period in the prior year for both the group and for the Company.
The movement in EPS and HEPS is primarily attributed to the increase in sales volumes for the period and the net foreign exchange gain which resulted from the strengthening of the Kwacha against the dollar between end of September 2018 and end of March 2019