Weekly Capital Markets Report (6th to 9th August 2019)
Economy, Opinion

In the second week of trading, the Capital markets saw a shift towards equities trades as bonds under performed reducing their stake to 39%.

Source: Financial Insight Analytics

Equities Market Summary

In the week ended 09th August 2019, a total of 3,685,643 shares were transacted in 60 trades, yielding a market turnover of K7,991,474. Share price losses of K0.01 and K0.15 were posted in CEC and SCBL respectively. Trading activity was also recorded in AEL Zambia, PUMA, and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) closed at 4,503.18 points. The market closed on a capitalization of K57,549,799,098 including Shoprite Holdings and  K23,310,593,118 excluding Shoprite Holdings. At week two, the number of no trades being record rose to 3 days for the month of August (excludes holidays).

Source: Financial Insight Analytics

Bond Market Summary

The corporate bond market sales slumped by 96% in the second week of trading. During the week, bonds of total face value of K7,493,000 were transacted in 10 trades, yielding a market value sales of K5,045,000.

Source: Financial Insight Analytics

Weekly Diary

Monday

Public holiday

Tuesday

In 1 trade recorded on the opening day of trading, 700 shares were transacted, yielding a market turnover of K966. Trading activity was recorded in Copperbelt Energy Corporation. The LuSE All Share Index (LASI) maintained its previous close of 4,567.21 points as there were no share price movements. The market remained on a capitalization of K57,816,096,104 including Shoprite Holdings and K23,576,890,124 excluding Shoprite Holdings.

Wednesday

No trades recorded on the day

Thursday

In 56 trades recorded on the day, 3,683,943 shares were transacted, yielding a market turnover of K7,989,138. A share price loss of K0.15 was recorded in Standard Chartered Bank Limited. Trading activity was also recorded in AEL Zambia, Copperbelt Energy Corporation, PUMA and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) closed at 4,507.09 points down by 1.33% from its previous close of 4,567.21 points. The market closed on a capitalization of K57,566,049,104 including Shoprite Holdings and K23,326,843,124 excluding Shoprite Holdings.

Friday

In 3 trades recorded today, 1,000 shares were transacted, resulting in a market turnover of K1,370. A share price loss of K0.01 was recorded in CEC. The LuSE All Share Index (LASI) closed at 4,503.18 points down by 0.09% from its previous close of 4,507.09 points. The market closed on a capitalization of K57,549,799,098 including Shoprite Holdings and K23,310,593,118 excluding Shoprite Holdings.

At the close of the week, only 4 companies had equities trades and the chart below shows that share prices of the stock.

Source: Financial Insight Analytics

Financial Insight Analysis

The second week of August came to life with 3 out 4 days of trading in a week that saw the equities trades dominate bond trades.

Equities trading went from no trades being recorded in the first week of august to recording over 3.6 million shares being traded on the LuSE. Bond trades on the other hand saw a 96% slump despite recording 8 more trades compared to the previous week. With just over K5 million in sales, the second week of August was the lowest since May 2019.

AEL Zambia securities were the highest priced equities traded during the week with PUMA being the lowest priced. Standard Chartered bank dominated volume and turnover for traded securities.

The Lusaka Securities Exchange Index (LUSI) has continued to decline falling by 24.18% since it peeked on 26th February this year. The LUSI is now at the levels it was during its ascendancy bullish run of April 2017.

 

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