Week 2 continues to stand out for equities out-performance in July as week 3 saw a slip to the level of trading that was seen in week 1 of July. The bond market on the other hand has enjoyed continued growth in sales on a week by week basis signalling more appetite by investors for fixed income assets at half year.
Equities Market Performance
In the week ended 19th July 2019, a total of 44,325 shares were transacted in 68 trades, yielding a market turnover of K97,979. This was a drop of 99% in comparison to turnover of the previous week of trading. A share price loss of K3.49 was recorded in AEL Zambia. This was the only security whose share price fell during the week. Trading activity was also recoded in Airtel, CEC Zambia, Lafarge, PUMA, Standard Chartered Bank and Zambia Sugar. The LuSE All Share Index (LASI) closed at 4,568.12 points. The market closed on a capitalization of K57,819,901,484 including Shoprite Holdings and K23,580,695,504 excluding Shoprite Holdings.
Bond Market Performance
During the week, bonds of total face value of K177,175,000 were transacted in 33 trades, yielding a market value sales of K105,191,000. This was a 59% rise in bond sales compared to the previous week of trading.
Stock Market Diary
In week three the highest priced security was Airtel while the lowest was CEC Zambia.
Monday 15th
In 35 trades recorded yesterday 5,501 shares were transacted, yielding a market turnover of K7,538. There was a share price drop of 0.01 recorded in Copperbelt Energy Corporation and it is the only company that recorded a trade. The LuSE All Share Index (LASI) closed at 4,581.33 points down by 0.09% from its previous close of 4,585.24 points. The market closed on a capitalization of K57,874,870,512 including Shoprite Holdings and K23,635,664,532 excluding Shoprite Holdings.
Tuesday 16th
In 5 trades recorded yesterday, 15,656 shares were transacted, yielding a market turnover of K40,444. Trading activity was recorded in Airtel and Zambia Sugar. The LuSE All Share Index (LASI) maintained its previous close of 4,581.33 points as there were no prices changes. The market remained on a capitalization of K57,874,870,512 including Shoprite Holdings and K23,635,664,532 excluding Shoprite Holdings.
Wednesday 17th
In 19 trades recorded yesterday, 13,773 shares were transacted, yielding a market turnover of K20,185. A share price gain of K0.01 was recorded in Copperbelt Energy Corporation. Trading activity was also recorded in Lafarge, PUMA, and Standard Chartered Bank Limited. The LuSE All Share Index (LASI) closed at 4,585.24 points up by 0.09% from its previous close of 4,581.33 points. The market closed on a capitalization of K57,891,120,518 including Shoprite Holdings and K23,651,914,538 excluding Shoprite Holdings.
Thursday 18th
In 9 trades recorded yesterday, 9,405 shares were transacted, yielding a market turnover of K24,812. A share price loss of K3.49 was recorded in AEL Zambia. Trading activity was also recorded in Copperbelt Energy Corporation, PUMA, and Standard Chartered Bank Limited. The LuSE All Share Index (LASI) closed at 4,568.12 points down by 0.37% from its previous close of 4,585.24 points. The market closed on a capitalization of K57,819,901,484 including Shoprite Holdings and K23,580,695,504 excluding Shoprite Holdings. ..
Friday 19th
There were no trades today. The LuSE All Share Index (LASI) maintained its previous close of 4,568.12 points as there were no share price movements. The market remained on a capitalization of K57,819,901,484 including Shoprite Holdings and K23,580,695,504 excluding Shoprite Holdings.
Financial Insight Analysis
Week 3 signaled the resurgence of the bond market. It outperformed the equities market which experienced a sharp dip following the previous week’s surge in turnover and trading volume. Thus far, should July remain strong over the next two weeks of July then it could potentially be the second highest trading month in equities in 2019 as it has firmly locked third place thus far.
AEL Zambia’s security lost substantial ground in terms of share price during the week. The security lost 14.86% during the week bringing the share price to K20 erasing gains made during the year.
Zambia Sugar recorded the highest turnover beating CEC Zambia which has dominated sales over the last couple of months which came in second during the week. However, more CEC shares were traded signalling continued investor exit in the security which has been priced fairly as indicated by its price to book value which currently is below 1 signalling an under priced security. This also shows that buyers of securities are looking for bargains as the same can be said about the Zambia Sugar security despite the latter having a weaker dividend per share.
Important Announcements
First Quantum Provides Notice Of Second Quarter Results Release
TORONTO, Ontario (July 12, 2019) – First Quantum Minerals Ltd. (“First Quantum” or “the Company”) (TSX:FM) will release second quarter 2019 financial and operating results on Monday July 29, 2019 after the close of the Toronto Stock Exchange. The Company’s President, Clive Newall, will host a conference call and webcast to discuss the results on Tuesday July 30, 2019 at 9:00 am (EDT).