In the penultimate week of the coldest month of the year, bonds and equities trades achieved parity in turnover for the first time this year.
Equities Performance
In the week ended 21st June 2019, a total of 1,607,179 shares were transacted in 102 trades, yielding a market turnover of K5,660,439. Share price losses K0.30, K0.01, K2.69 and K0.10 were recorded in BATA, SCBL, Zambian Breweries and Zambia Sugar respectively. Trading activity was also recoded in CEC Zambia, Lafarge Holcim, Madison Financial Services, PUMA, REIZ and CEC Africa on the qouted tier. The LuSE All Share Index (LASI) closed at 4,632.03 points. The market closed on a capitalization of K58 085 739 605 including Shoprite Holdings and K23 846 533 625 excluding Shoprite Holdings.
Bond Market Performance
During the week, bonds of total face value of K8,635,000 were transacted in 6 trades, yielding a market value sales of K5,558,000.
Weekly Diary
Monday 17th
- The week opened with 27 trades recorded on the day
- 1,572,576 shares were transacted, resulting in a market turnover of K5,599,848.
- A share price loss of K2.69 was recorded in Zambia Breweries.
- Trading activity was also recorded in Copperbelt Energy Corporation, Lafarge, PUMA, Real Estate Investments Zambia and CEC Africa on the quoted tier.
- The LuSE All Share Index closed at 4,649.14 points down by 7.06% from its previous close of 5,002.27 points.
- The market closed on a capitalization of K58 156 898 824 including Shoprite Holdings and K23,917 692 844 excluding Shoprite Holdings.
Tuesday 18th
- In 12 trades recorded on the day, 4,370 shares were transacted, resulting in a market turnover of K5,629.
- Trading activity was recorded in Copperbelt Energy Corporation and Lafarge.
- The LuSE All Share Index maintained its previous close of 4,649.14 points as there were no share price movements.
- The market remained on a capitalization of K58,156,898,824 including Shoprite Holdings and K23,917,692,844 excluding Shoprite Holdings.
Wednesday 19th
- In mid week trading, 18 trades recorded on the day, 13,528 shares were transacted, yielding a market turnover of K32,210.
- Share price losses of K0.01 and K0.10 were recorded in Standard Chartered Bank Limited and Zambia Sugar.
- Trading activity was also recorded in Copperbelt Energy Corporation, Lafarge, Madison Financial Services, Zambian Breweries and Zambeef.
- The LuSE All Share Index closed at 4,637.52 points down by 0.25% from its previous close of 4,649.14 points.
- The market closed on a capitalization of K58 108 571 885 including Shoprite Holdings and K23 869 365 905 excluding Shoprite Holdings.
Thursday 20th
- In 37 trades recorded on the day, 11,610 shares were transacted, yielding a market turnover of K13,160.
- A share price loss of K0.30 was recorded in BATA.
- Trading activity was also recorded in CEC Zambia, Lafarge, Madison Financial Services, Standard Chartered Bank Limited, Zambia Breweries and CEC Africa on the quoted tier.
- The LuSE All Share Index closed at 4,632.03 points down by 0.12% from its previous close of 4,637.52 points.
- The market closed on a capitalization of K58 085 739 605 including Shoprite Holdings and K23 846 533 625 excluding Shoprite Holdings.
Friday 21st
- On the final day of trading during the week a total 5,095 share transacted in 8 trades recorded today, resulting in a market turnover of K9,592.
- Trading activity was recorded in British American Tobacco Zambia, Copperbelt Energy Corporation, Lafarge and Zanaco.
- The LuSE All Share Index (LASI) maintained its previous close of 4,632.03 points as there were no price movements.
- The market remained on a capitalization of K58,085,739,605 including Shoprite Holdings and K23846,533,625 excluding Shoprite Holdings.
Financial Insight Analysis
The trading week opened with Monday turnover eclipsing the entire previous week’s trading over 5 days. However, the entire week ended with trading volume and turnover 69% and 59% weaker than the second trading week of the month.
During June thus far, trading in the 3rd week is the second highest with one more trading week remaining.
Bond trades dipped by 50% with only 6 trades being recorded. Furthermore, bond sales made during the week marched equity sales in a rare occurrence of parity in the capital markets.
CEC Zambia and Zambrew took first place in trading volume and turnover respectively. Of note was the reducing share price of CEC Zambia.
Important SENS Announcements
In the 15 months following change of control, the Company has focused on rebuilding skills to support a stand-alone entity; aligning systems, processes and practices with those of Delta Corporation. This has been in the face of significant headwinds, a period in which margins were eroded due to high increases in the cost of imported packaging materials emanating from the currency depreciation. In addition, the Company faced increased competition from bulk traditional beer producers and unregulated cheap spirits
BAT Zambia refutes Business News article
Shareholders are referred to the article published in the Business News on 4 June 2019, titled “BAT named in $718M Tax Fraud” (“the Article”). The Article contains unproven and damaging claims that British American Tobacco (“BAT”) avoids taxes in Zambia.