In the second week of the Final trading month of 2020, bond trading on the LuSE. We revert back to our old pattern as the equities market recorded a score of 2% to 98% on the bond market. This is a 33% drop from the week prior, hoping that the odds favor the equities market in the weeks to come.
Company’s Securities continue to face economic challenges such as the depreciation of the Zambian Kwacha, high pay role taxes amongst other reasons thus the merge scores being recorded. On the 11th of December 2020, the Bank of Zambia Governor, Mr Christopher Mvunga signed a Gold purchase agreement with Kansanshi Mining PLC on behalf of the Central Bank. This agreement is a milestone in the Bank’s efforts to resume the holdings of gold as part of the country’s foreign exchange rate reserves. This agreement, will enable the country to boost its foreign reserves and there after boost our economy.
Equity Market
In the week ended 11th December 2020, a total of 2,081,043 shares were transacted in 175 trades, yielding a market turnover of K2,976,816. Trading activity was recorded in CAVMONT CAPITAL HOLDINS ZAMBIA, CEC ZAMBIA, PUMA, REI ZAMBIA, STANDARD CHARTERED ZAMBIA and ZANACO. The Index (LASI) closed at 3,855.85 points. The market closed on a capitalization of K57,261,636,946 including Shoprite Holdings and K23,022,430,966 excluding Shoprite Holdings.
Bond Market
Bonds of total face value of K223,370,000 were transacted in 27 trades, resulting in a market value sales of K172,214,000.
Important accouchements
ZAMBIA NATIONAL BUILDING SOCIETY
Total assets of the Society increased by 30% year on year. This was mainly driven by the growth in depositors’ funds and borrowings. Revenue operating activities increased by 22% with the significant increase resulting from interest from placements with banks. Interest expenses recorded significant increases due to new borrowings contracted, heightened by the increase in cost of borrowing on the market during the period under review.
CAVMONT CAPITAL HOLDINGS ZAMBIA PLC
The listing of all the Cavmont shares on the LUSE will be suspended and terminated with effect from 14:00 on 31 December 2020 (previously 18 December 2020 as set out in the Circular). This date is subject to amendment and any such amendment will be released on SENS.
MADISON FINANCIAL SERVICES PLC
The Board of Directors of Madison Financial Services Plc (“the Board”) (“MFS” or “the Company”) wishes to inform shareholders, as well as other market participants, that there are developments relating to the Company, the full impact of which are