With three weeks of trading on the LuSE in September, there’s a turnaround for the equities market as it records a score of 39% to 61% which is the best we’ve seen on the Equities Market this month. Despite the pandemic, some Companies are recording growth and this is a result of gains arising from the devaluation of the Kwacha against the US Dollar and reduction in Operating Expenses.
Equity Market Update
In the week ended 18th September 2020, a total of 551,899 shares were transacted in 38 trades, yielding a market turnover of K2,712,779. Trading activity was recorded in AEL ZAMBIA, CEC ZAMBIA, LAFARGE, PUMA, STANDARD CHARTERED ZAMBIA, ZAMBEEF, ZAMBIAN BREWERIES and ZAMBIA SUGAR. The Index (LASI) closed at 3,834.35 points. The market closed on a capitalization of K55,510,536,355 including Shoprite Holdings and K21,271,330,375 excluding Shoprite Holdings.
Bond Market Update
During the week, bonds of total face value of K5,946,000 were transacted in 14 trades, yielding a market value sales of K4,259,000.
Week two remains the best performing week of the month of September thus far.
Important announcements
PUMA ENERGY ZAMBIA PLC
At the 58th Annual General Meeting of Puma Energy Zambia Plc, held on online Monday 29th June 2020 at 11:30 via Zoom Meeting, a final dividend of K0.02 per share (totaling K10 million) for the financial year ended 31st December 2019 was approved by the Members.
REAL ESTATE INVESTMENTS ZAMBIA PLC
In accordance with the Lusaka Securities Exchange Limited (“LuSE”) Listings Requirements, the Board of Directors advises the Shareholders of Real Estate Investments Zambia PLC (“the Company”) that for the half-year ended 30 June 2020, the basic earnings per share is expected to be 183% higher than the basic earnings per share for the half-year ended 30 June 2019.
REAL ESTATE INVESTMENTS ZAMBIA PLC
Group revenue for the six months to 30 June 2020 decreased by 10.67%, in comparison with same period in prior year, mainly due to higher vacancies and Covid-19 related non-invoicing and discounted invoicing for some tenants that were not operating during the second quarter after Government directives for closure of certain businesses such as restaurants, cinema, bars, casinos and hair-saloons. Overall portfolio vacancies increased from 25.72% to 31.27% between June 2019 and June 2020. The ZMW/US$ exchange rate at an average of ZMW14.7/US$1 played in favour of the H1 2020 rentals revenue compared to H1 2019 when the average exchange rate was around ZMW12.5/US$1 but this was not sufficient to fully compensate for the reduction in revenue due to vacancies and Covid-19 restrictions.
Prima Reinsurance PLC
The Company operated in a challenging environment with the onset of the COVID 19 pandemic, where it witnessed unprecedented decline in private sector economic activity. The Company initiated its Business Continuity Plan, allowing staff to continue working remotely and continue providing its services both at domestic and international levels.
Prima Reinsurance PLC
In accordance with the Lusaka Securities Exchange (“LuSE”) Listings Requirements, the Board ofDirectors of Prima Reinsurance PLC (the “Company”) hereby advises the Shareholders of the Company that the Earnings per Share (EPS) for the six-month period ended 30 June 2020 is expected to exceed that of the six-month period ended 30 June 2019 by approximately 131%