The bond market continues to dominate the capital markets with a take up of 94% over the equity market with only 6%. However, week 5 which was the last trading week of November ended on a fairly low note with sales of K999 thousand and picked up in the first trading week of December with K133.7 million in turnover.
As for the equities market, December started off with a high turnover of K8.7 million as compared to K175 thousand in the last week of November.
Equity Market Update
In the week ended 6th December 2019, a total of 3,134,138 shares were transacted in 143 trades, yielding a market turnover of K8,779,180. Trading activity was recorded in CEC ZAMBIA, MADISON FINANCIAL SERVICES, LAFARGE, PUMA, STANDARD CHARTERED BANK LIMITED, ZANACO, ZAMBIA SUGAR and CEC AFRICA on the quoted tier. The LuSE All Share Index (LASI) closed at 4,268.90 points. The market closed on a capitalization of K56,573,805,829 including Shoprite Holdings and K22,334,599,849 excluding Shoprite Holdings.
Bond Market Update
During the week, bonds of total face value of K192,160,000 were transacted in 17 trade, yielding a market value sales of K133,754,000.
Perspective
With only five trading weeks remaining in 2019, the Corporate Bond market continues to dominate the capital markets. December opened with a stronger sales performance for it compared to the equities market.
What was also interesting was that both markets opened to better performances in the opening week of December trading compared to the last week of November. On the one hand, the corporate bond trading has been on a downward trend but there was resurgence in week 1 of December. On the other hand, although the equities market closed weaker in the closing week on November, overall their Q4 performance still remains strong. So strong that with the opening week’s performance, Q4 is destined to be the strongest quarter for trading equities in 2019.
From a company trading perspective, Madison Financial Services was the highest priced security to be traded during the week and recorded the highest sales. Despite being overvalue, based on the high Price to Earnings ratio, this security’s sales dwarfed all other traded securities during the week.
Important Announcements
Further cautionary announcement from CEC ZAMBIA
Further to the Cautionary Announcement dated 27th September 2019, shareholders are advised that the
arbitration matter between ZESCO and Copperbelt Energy Corporation Plc (“CEC” or “the Company”) is in process
and remains under adjudication
An appointment under resignation
In accordance with Section 3.59 of the Lusaka Securities Exchange Listing Rules, the Board of Zambia Sugar Plc
(“the Board”) (“Zambia Sugar” or “the Company”) wishes to announce the retirement of Mr Fidelis M. Banda as
Chairman of the Board effective 28 November 2019. Mr Banda will remain a Non-Executive member of the Board.
Furthermore, the Board would like to announce the appointment of Mr Norman Mbazima as the new Chairman
of the Board.
Appointment of new CFO at Zambia sugar.
In accordance with Section 3.59 of the Lusaka Securities Exchange Listing Rules, the Board of Zambia Sugar Plc
(“the Board”) (“Zambia Sugar” or “the Company”) wishes to announce the appointment of Mr Raphael Chipoma
as Finance Director of the Company effective 2nd December 2019