Week 23 Stock Market Update (3rd to 7th June)
Economy, Opinion

CEC Zambia led the pack in the first week of trading in June.

Source: Financial Insight Analytics

Equity Market Performance

In the week ended 07th June 2019, a total of 245,190 shares were transacted in 113 trades, yielding a market turnover of K339,100. Share price losses of K0.02, K0.05, K0.02, K3.50 and K0.02 were recorded in AEL Zambia, CEC Zambia, Lafarge, Zanaco and Zambian Breweries respectively while CEC Africa recorded a gain of K0.01. Trading activity was also recoded Airtel Zambia, Madison Financial Services, REIZ, Standard Charted Bank, Zambeef and ZCCM IH. The LuSE All Share Index (LASI) closed at 4,995.97 points. The market closed on a capitalization of K59 599 441 685 including Shoprite Holdings and K25 360 235 705  excluding Shoprite Holdings.

Bond Market Performance

During the week, bonds of total face value of K250,963,000 were transacted in 12 trades, yielding a market value sales of K162,626,000.

Weekly Diary

Monday 3rd

  • The week opened with 25 trades recorded on the first day of trading
  • 119,727 shares were transacted, resulting in a market turnover of K172,029.
  • Share price losses of K0.04, K0.02 and K3.55 were recorded in Copperbelt Energy Corporation, Lafarge and Zambia Breweries.
  • Trading activity was also recorded in Airtel, Madison Financial Services, Standard Chartered Bank Limited and Zambeef.
  • The LuSE All Share Index (LASI) closed at 5,000.36 points down by 8.80% from its previous close of 5,482.98 points. The market closed on a capitalization of K59 617 674 824 including Shoprite Holdings and K25 378 468 844 excluding Shoprite Holdings.

Tuesday 4th

  • In 15 trades recorded on the day, 76,289 shares were transacted, resulting in a market turnover of K92,481.
  • A share price loss of K0.01 was recorded in Copperbelt Energy Corporation.
  • Trading activity was also recorded in Lafarge.
  • The LuSE All Share Index (LASI) closed at 4,996.45 points down by 0.08% from its previous close of 5,000.36 points.
  • The market closed on a capitalization of K59 601 424 818 including Shoprite Holdings and K25 362 218 838 excluding Shoprite Holdings.

Wednesday 5th

  • In 4 trades recorded on the day, 28,300 shares were transacted, resulting in a market turnover of K35,500.
  • Trading activity was recorded in Copperbelt Energy Corporation and Lafarge.
  • The LuSE All Share Index (LASI) maintained its previous close of 4,996.45 points as there were no price movements.
  • The market remained on a capitalization of K59 601,424,818 including Shoprite Holdings and K25,362,218,838 excluding Shoprite Holdings

Thursday 6th

  • In 52 trades recorded on the day, 11,553 shares were transacted, resulting in a market turnover of K23,234.
  • A share price gain of K0.01 was recorded in CEC Africa on the quoted tier while AEL Zambia recorded a loss of K0.02.
  • Trading activity was recorded in Copperbelt Energy Corporation, Lafarge, Real Estate Investments Zambia, Standard Chartered Bank Limited and Zambia Consolidated Copper Mines.
  • The LuSE All Share Index (LASI) closed at 4,996.35 points down by 0.10 points from its previous close of 4,996.45 points.
  • The market closed on a capitalization of K59 601 016 686 including Shoprite Holdings and K25 361 810 706 excluding Shoprite Holdings.

Friday 7th

  • In final day of trading for the week 18 trades recorded on Friday, 9,321 shares were transacted, resulting in a market turnover of K15,855.
  • A share price gain of K0.05 was recorded in Zambia Breweries while Zanaco recorded a loss of K0.02.
  • Trading activity was recorded in Copperbelt Energy Corporation, Lafarge, Real Estate Investments Zambia, Standard Chartered Bank Limited and Zambia Consolidated Copper Mines.
  • The LuSE All Share Index closed at 4,995.97 points down by 0.01% from its previous close of 4,996.35 points.
  • The market closed on a capitalization of K59 599 441 685 including Shoprite Holdings and K25 360 235 705 excluding Shoprite Holdings.

 

Financial Insight Analysis

As far as opening weeks of trading go, week 1 of June 2019 is the second best performing week in terms of trades on the LuSE in 2019. The first 6 months of the year have seen trade volumes and turnover highest in January and followed by June as the chart below shows.

Source: Analytics by Financial Insight

Important Announcements

ZNBS: Annual Performance

Zambia National Building Society recorded a 15% increase in interest income for the 2019 from the 2018 financial year. The company has a listed corporate bond on the Lusaka securities and exchange hence the reason why a SENS announcement of its financial results was made. Total assets of the Society increased by 9% year on year. Interest expenses and loan impairment charges recorded significant increases owing to the increased cost of borrowing on the market and delays in the receipt of repayments for the civil service loans. Non funded income grew by 7% on account of an increase in the customer base.

Zambia Sugar: Half Year Performance

Cane supply and quality have been trending above that of the past three years mainly due to improved bulk water supply and infield irrigation, better aphid and black maize beetle control measures as well as an increased area due to better farming practices and improved field specific nutrition program. This recovery resulted in Sugar production for the 2018/19 farming season ending at 400 000 tons compared to 353 000 tons in the prior season.

The domestic market performance has continued on the positive trajectory largely driven by continued optimisation of route to consumer to enhance market penetration and availability, optimisation of product portfolio to ensure needs of all consumer segments are met.

Pamodzi Hotel: Full Year Performance

The total turnover increased by 7.13 percent from ZMW77.5 million to ZMW83.0 million over the same period. Operating profit margin also increased by 11.3 percent from ZMW13.7 million to ZMW15.3 million for the period ended 31st March 2019. The increases are due to increase in room segment income and Food and beverage segment income as compared to last year. Overall this contributed to a Profit After tax increase of 39.7 percent from ZMW1.7 million to ZMW2.4 million in 2019 over the same period

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