While the bond market slightly edged up, the equities market plummeted compared to the opening week’s performance levels.
Equities Market Summary
In the week ended 16th August 2019, a total of 222,664 shares were transacted in 135 trades, yielding a market turnover of K203,062. Trading activity was recorded in AEL ZAMBIA, AIRTEL, CEC ZAMBIA, LAFARGE, STANDARD CHARTERED BANK, ZAMEFA, ZANACO, ZCCM-IH and CEC AFRICA on the quoted tier.
Despite the number of traded securities doubling to 8 during the week, turnover was weaker in third week of August and marginally higher than the opening week of the month.
The LuSE All Share Index (LASI) closed at 4,503.18 points. The market closed on a capitalization of K57,549,799,098 including Shoprite Holdings and K23,310,593,118 excluding Shoprite Holdings.
Bond Market Summary
During the week, bonds of total face value of K30,848,000 were transacted in 14 trades, yielding a market value sales of K20,242,000. Although Week 3 had the highest number of trades, the performance was far less than what was traded in the opening week of the month.
Weekly Diary
Monday 12th
The week opened with 22 trades recorded on the first day of trading. 9,713 shares were transacted, resulting in a market turnover of K12,414. Trading activity was recorded in CEC Zambia, Lafarge and ZANACO. The LuSE All Share Index (LASI) maintained its previous close of 4,503.18 points. The market closed on a capitalization of K57,549,799,098 including Shoprite Holdings and K23,310,593,118 excluding Shoprite Holdings.
Tuesday 13th
In 27 trades recorded on the day, 45,183 shares were transacted, resulting in a market turnover of K39,300. Trading activity was recorded in CEC Zambia, Standard Chartered Bank Limited, ZCCM, ZAMFEA, Zanaco and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) maintained its previous close of 4,503.18 points. The market closed on a capitalization of K57,549,799,098 including Shoprite Holdings and K23,310,593,118 excluding Shoprite Holdings.
Wednesday 14th
In 4 trades recorded on the day, 155,100 shares were transacted, resulting in a market turnover of K125,767. Trading activity was recorded in CEC Zambia and ZANACO. The LuSE All Share Index (LASI) maintained its previous close of 4,503.18 points. The market closed on a capitalization of K57,549,799,098 including Shoprite Holdings and K23,310,593,118 excluding Shoprite Holdings.
Thursday 15th
In 81 trades recorded today, 11,268 shares were transacted, resulting in a market turnover of K24,559. Trading activity was recorded in AEL Zambia, Airtel and CEC Zambia. The LuSE All Share Index (LASI) maintained its previous close of 4,503.18 points. The market closed on a capitalization of K57,549,799,098 including Shoprite Holdings and K23,310,593,118 excluding Shoprite Holdings.
Friday 16th
In 1 trade recorded in ZNCO today, 1,400 shares were transacted, resulting in a market turnover of K1,022. The LuSE All Share Index (LASI) maintained its previous close of 4,503.18 points. The market closed on a capitalization of K57,549,799,098 including Shoprite Holdings and K23,310,593,118 excluding Shoprite Holdings.
The Chart below shows the closing prices for all traded securities at the end of week 3.
Weaker Equities Performance
With performance in equities trades for August far from reaching 50% of the turnover recorded in July, at week 3 trading is stronger than it was in the latter months of Q1 and Q2 of 2019.
Despite more securities being traded during the week, equities performance plunged by more than 90% during the week. Zanaco securities were the most traded and recorded the highest turnover with the popular CEC Zambia coming in second place. Airtel and ZCCM IH were the least traded during the week.
The LuSE All Share Index (LUSI) marginal lost 1.4% of its value from the previous week as the impact of weakening share prices in key leader securities continued.
Lacklustre rebound Bond Market
Investor appetite for fixed income marginally increased in the 3rd week as bond sales increase by 301%. With 66% more trades being recorded in the corporate bond market, sales were still below the K30million average that was recorded in July 2019.
This is a symptom of weakened cash supply and reduction in participation of offshore investors.
Trading remained was strongest for the 7 year bond with the 10 year one also being preferred. These bonds yield a 13% and 14% coupon.
Despite weaker weekly performance, August bond sales are fast approaching July levels with a likelihood that August trading may surpass July over the remaining 2 weeks.