In the fifth and final week of September 2020, bond trading on the LuSE. We see an 8% increase on the equities market from the previous week which recorded 0% on the equities market to 100% on the market this is due to increased trading activity in CEC ZAMBIA as well as CEC AFRICA on the quoted tier.
Into the first week of October 2020 bond trading on the LuSE, the bond market retains dominance over the equities market recording a score of 99% to 1% on the equities side.
Equity Market
In the week ended 2nd October 2020, a total of 82,135,627 shares were transacted in 1,103 trades, yielding a market turnover of K10,757,606. Trading activity was recorded in AFRICA EXPLOSIVES LIMITED ZAMBIA, COPPERBELT ENERGY CORPORATION, PUMA, REI ZAMBIA, STANDARD CHARTERED ZAMBIA, ZAMBIA BREWERIES, ZANACO, FIRST QUANTUM MINING and CEC AFRICA on the quoted tier. The Index (LASI) closed at 3,811.81 points. The market closed on a capitalization of K55,412,419,062 including Shoprite Holdings and K21,173,213,082 excluding Shoprite Holdings.
Bond market
During the week, bonds of total face value of K218,346,000 were transacted in 15 trades, yielding a market value sales of K129,805,000
The final week of September’s bond trading recorded the highest Face value while week four recorded the highest sales.
First week of October 2020, Corporate Bond trading on the LuSE.
Important announcements
ZAMBIA NATIONAL COMMERCIAL BANK PLC
The negative effects of the Novel Corona Virus 2019 (COVID-19) remained the dominant influence on global and domestic economic performance in the first half of 2020. Various forecasts now show the Zambian economy shrinking between 2.4 and 5.2 percent, from an initial growth projection of around 3 percent before the impact of the pandemic. Business activity hit new lows in the second quarter of the year as firms cut back production and headcount due to a slump in trade activities and consumption resulting from the lockdown and other national health emergency measures that were effected. Business sentiment was negatively affected by the material impact that COVID-19 had over a relatively short period of time.
CAVMONT CAPITAL HOLDINGS ZAMBIA PLC
In accordance with the Lusaka Securities Exchange (“LuSE”) Listings Requirements, the Board of Directors of Cavmont Capital Holdings Zambia PLC (the “Company”) hereby advises the Shareholders of the Company that the Loss per Share for the year ended 30 June 2020 is expected to be about 929% higher as compared to the Loss per Share for the year ended 30 June 2019.
ZAMBIA FORESTRY AND FOREST INDUSTRIES CORPORATION PLC
In accordance with the Lusaka Securities Exchange (“LuSE”) Listing Requirements, the Board of Directors of ZAFFICO Plc (“the Company”) hereby advises the Shareholders of the Company that the Earnings per Share (EPS) for the Half Year Ended 30 June 2020 are expected to be lower than the EPS for the Half Year Ended 30 June 2019 by about 64%.
MADISON FINANCIAL SERVICES PLC
In accordance with the Lusaka Securities Exchange (“LuSE”) Listings Requirements, the Board of Directors of Madison Financial Services PLC (“MFS” or “the Company”) hereby advises the Shareholders of the Company that the Earnings per Share and Headline Earnings per Share for the half-year ended 30 June 2020 are expected to be approximately 37 % higher than for the half-year ended 30 June 2019.
In accordance with Section 3.4(b) Lusaka Securities Exchange (“LuSE”) Listings Requirements, the Board of Directors of ZCCM-Investments Holdings PLC (the “Company” or “ZCCM-IH”) hereby advises the Shareholders of the Company that the Earnings Per Share (“EPS”) for the Group Unaudited Half Year Results for the Period Ended 30th June 2020 is expected to be approximately 241% higher than the Unaudited Half Year Results for the Period Ended 30th September 2019.
CAVMONT CAPITAL HOLDINGS ZAMBIA PLC
The Group recorded a lower operating income for the period, mainly as a result of materially higher impairment charges, and decreased net interest and non-interest income. Non-interest income reflected a reduction from prior year as a result of reduced foreign exchange income mainly driven by lower trading volumes. Efforts are being directed at ensuring an improvement in volumes for the next financial year. An improvement has already been noted in foreign exchange income for the 1st quarter of the 2021 financial year. In addition to foreign exchange and trading income, the Grouincurred a reduction in transaction volumes in the last quarter of the financial year, mainly as a result of the economic impact of Covid-19.
ZAMBIA FORESTRY AND FOREST INDUSTRIES CORPORATION PLC
The announcement contained herein contains information that may be of a price sensitive nature. Investors are advised to seek the advice of their investment advisor, stockbroker, or any professional duly licensed by The Securities and Exchange Commission of Zambia to provide securities activities.