Week two of July joins June and February in the highest performing weeks on the equities market thus far. Both June and July sales turnover was north of K13 million. The Bond market also edged up in the second week of trading. Total sales for week 2 were distributed 27% in favor of equities and 73% in favor of the bonds.
Equities Market Performance
In the week ended 12th July 2019, a total of 9,984,855 shares were transacted in 41 trades, yielding a market turnover of K13,781,050. A share price gain of K0.01 was recorded in CEC. Trading activity was also recorded in Airtel, Lafarge, Standard Chartered Bank, Zambian Breweries, Zanaco Bank and Cavmont Capital on the qouted tier. The LuSE All Share Index (LASI) closed at 4,585.24 points. The market closed on a capitalization of K57,891,120,518 including Shoprite Holdings and KK23,651,914,538 excluding Shoprite Holdings.
Bond Market Performance
During the week, bonds of total face value of K60,753,000 were transacted in 11 trades, yielding a market value sales of K37,851,000.
Weekly Stock Market Diary
Monday 8th
The week opened with no trades recorded
Tuesday 9th
- In 27 trades recorded yesterday, 6,704,118 shares were transacted, yielding a market turnover of K9,228,320.
- A share price gain of K0.14 was recorded in Copperbelt Energy Corporation. Trading activity was also recorded in Airtel, Lafarge, Standard Chartered Bank Limited, Zambia Breweries, Zanaco and CEC Africa on the quoted tier.
- The LuSE All Share Index (LASI) closed at 4,585.24 points up by 1.21% from its previous close of 4,530.54 points.
- The market closed on a capitalization of K57,891,120,518 including Shoprite Holdings and K23,651,914,538 excluding Shoprite Holdings.
Wednesday 10th
- In 2 trades recorded yesterday, 300 shares were transacted, yielding a market turnover of K1,074.
- A share price loss of K0.01 was recorded in Copperbelt Energy Corporation.
- Trading activity was also recorded in Zambia Breweries.
- The LuSE All Share Index (LASI) closed at 4,581.33 points down by 0.09% from its previous close of 4,585.24 points.
- The market closed on a capitalization of 57,874,870,512 including Shoprite Holdings and 23,635,664,532 excluding Shoprite Holdings.
Thursday 11th
- In 4 trades recorded yesterday, 64 shares were transacted, yielding a market turnover of K88.32.
- Trading activity was only recorded in Copperbelt Energy Corporation.
- The LuSE All Share Index (LASI) closed at 4,581.33 points with no change from the previous All Share Index.
- The market closed on a capitalization of 57,874,870,512 including Shoprite Holdings and 23,635,664,532 excluding Shoprite Holdings.
Friday 12th
- In 21 trades recorded today, 3,306,276 shares were transacted, yielding a market turnover of K4,571,642.
- There was a share price gain of 0.01 recorded in CEC. Trading activity was also recorded in ZMFA and ZMBR and in CCAF on the quoted tier.
- The LuSE All Share Index (LASI) closed at 4,585.24 points up by 0.09 from its previous close of 4,581.33 points.
- The market closed on a capitalization of K57,891,120,518 including Shoprite Holdings and K23,651,914,538 excluding Shoprite Holdings.
Financial Insight Analysis
The laws of supply and demand continued to prevail in the second week of July. CEC Zambia securities were again the most traded despite the power company’s stock price edging up to K1.38 per share.
A total of 9.97 million shares of CEC were traded pushing the LuSE’s equity performance to a high for July. The turnover realised by this surge in trades was K13.70 million which makes week two of July on of the 3 highest second week performance recorded on the LuSE this year.
Airtel Zambia’s security recorded only 1 trade of 12 shares making it the weakest traded during the week. The telecoms company’s security close the week maintaining its status as one of the most expensive securities at K31.5 per share.
Although the Airtel security’s PE ratio indicates that the shares over overvalued, the company posts a better Earnings per share (EPS) and Dividend per share (DPS) when compared to the CEC security. Furthermore, investors who have been tracking the business news around the two companies will know that the former has been making strides in its recent listing on the London Stock Exchange whereas the latter has a small matter of an expiring contract in 2020 that puts its current business model into the spot light.
Important Announcements
Investrust Bank Financial Performance
The Bank recorded a loss before tax of K58.05 million in 2018 (2017: loss before tax K51.35 million). Loss after tax was K109.18 million during 2018 (2017: loss after tax K37.99 million), mainly due to the reversal of the previously recognised deferred tax asset in respect of carry forward tax losses amounting to K53 million; reduced lending and subdued profit from foreign exchange trading transactions. The Bank’s net interest income decreased by 19% to K39.5 million (2017: K48.9 million) owing to significant reduction in interest income on account of inhibited growth in the loan book and Government securities portfolio. The decrease in interest income was mitigated by a 51% decrease in interest expenses to K48.8 million (2017: K99.1 million).