With only two trading weeks remaining on the 2019 financial calendar, Corporate bonds have maintained stronger performance compared to equities in the Zambian Capital Markets. At week 3, bonds outpaced equities trade sales by 98 to 2 percentage points.
Equity Market Update
In the week ended 20th December 2019, a total of 2,406,041 shares were transacted in 47 trades, yielding a market turnover of K1,122,650. Trading activity was recorded in COPPERBELT ENERGY CORPORATION ZAMBIA, LAFARGE, STANDARD CHARTERED BANK LIMITED, REI ZAMBIA and ZANACO.
Sales on the equities market increased by 614% in week 3 compared to the previous week of trading. This increase, however, is still dwarfed by the performance of the opening week of December trading.
The LuSE All Share Index (LASI) closed at 4,264.51 points. The market closed on a capitalization of K56,516,055,827 including Shoprite Holdings and K22,276,849,847 excluding Shoprite Holdings.
Bond Market Update
During the week, bonds of total face value of K84,491,000 were transacted in 68 trade, yielding a market value sales of K56,174,000. This was a 26% increase in sales compared to the previous week of trading
Perspective
With the 2019 financial year drawing to a close over the next 9 days, Equity trading in Q4 was strongest over the last 12 months. Corporate bond trading in Q4, on the other hand, is poised to be the weakest when compared to all trading quarters.
Liquidity constraints have characterized the behavior of investors. The allure of high yielding fixed income has attracted a few to seek out Government T-Bills and Bonds, albeit for medium tenure paper.
Other behavior of note was singular security transactions that led to high volume and turnover in documented weeks. In the latest week, ZANACO had the highest volume of shares traded with 2.3 million shares being traded in 19 transactions.
Important Announcements
ZCCM IH publishes Annual Report
When the ZCCM IH board meets with shareholders next month, they will be presenting a K0.33 per share dividend to shareholders which will bring the 2019 declared dividend for class A and B shareholders to approximately K53 million.