Trading on the LuSe in Week 20 was bearish recording over 80% fall in trade volume and turnover. The bond market however, recorded its most bullish week yet as investors switched from equities to fixed income.
Equity Market Performance
“In the week ended 16th May 2019, a total of 58,345 shares were transacted in 47 trades, yielding a market turnover of K53,5230”, according to Luse’s weekly stock market news report produced on 17th May 2019. “Share price gains of K0.02 and K2.50 was recorded CEC Zambia and Zambian Breweries respectively while AEL Zambia and Standard Chartered Bank recorded losses of K0.99 and K K0.01 respectively”.
“Trading activity was also recorded in Airtel, Lafarge Holcim Zambia, PUMA, Zambeef, Zambia Sugar and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) closed at 5,740.17 points”, the report further stated.
The market closed on a capitalization of K62,694,690,507 including Shoprite Holdings (0.59% higher than the previous Friday) and K28,455,484,527 excluding Shoprite Holdings.
Bond Market Performance
“During the week, bonds of total face value of K138,346,000 were transacted in 16 trades, yielding a market value sales of K76,404,000”, according to the LuSE Weekly Stock Market Report. This represents a surge of 1635% in the total face value of bonds traded from the previous week.
Weekly Stock Market Diary
Monday 14
- The week opened with 5 trades recorded on the day
- 425 shares were transacted, resulting in a market turnover of K681.
- A share price gain of K0.02 was recorded Copperbelt Energy Corporation.
- Trading activity was also recorded in Zambia Sugar and CEC Africa on the quoted tier.
- The LuSE All Share Index closed at 5,420.84 points up by 0.14% from its previous close of 5,413.03 points.
- The market closed on a capitalization of K61,366,562,841 including Shoprite Holdings and K27,127,356,861 excluding Shoprite Holdings.
Tuesday 15
- 9 trades recorded on the day with 37,662 shares were transacted, yielding a market turnover of K17,619.
- A share price gain of K1.19 was recorded in Zambia Breweries.
- Trading activity was also recorded in Copperbelt Energy Corporation, Lafarge and CEC Africa quoted tier.
- The LuSE All Share Index (LASI) closed at 5,577.06 points up by 2.88% from its previous close of 5,420.84 points.
- The market closed on a capitalization of K62,016,302,841 including Shoprite Holdings and K27,777,096,861 excluding Shoprite Holdings.
Wednesday 16
- At mid-week, 7 trades recorded on the day, 784 shares were transacted, resulting in a market turnover of K5,548.
- A share price gain of K1.31 was recorded in Zambia Breweries while Standard Chartered recorded a loss of K0.01. Trading activity was also recorded in Airtel. The LuSE All Share Index closed at 5,745.02 points up by 3.01% from its previous close of 5,577.06 points. The market closed on a capitalization of K62,714,893,041 including Shoprite Holdings and K28,475,687,061 excluding Shoprite Holdings.
Thursday 17
- 14 trades recorded on the day
- 9,651 shares were transacted, yielding a market turnover of K12,945.
- A share price gain of K0.01 was recorded in Copperbelt Energy Corporation.
- Trading activity was also recorded in Lafarge, Puma and CEC Africa on the quoted tier.
- The LuSE All Share Index closed at 5,748.93 points up by 0.07% from its previous close of 5,745.026 points.
- The market closed on a capitalization of K62,731,143,047 including Shoprite Holdings and K28,491,937,067 excluding Shoprite Holdings.
Friday 18
- Week closed with 12 trades recorded on the day
- 9,823 shares were transacted, resulting in a market turnover K16, 738.
- Shares price losses of K0.99 and K0.01 was recorded in AEL Zambia and CEC Zambia. Trading activity was also recorded Lafarge and Zambeef.
- The LuSE All Share Index (LASI) closed the week at 5,740.17 points down by 0.15% from its previous close of 5,740.17 points.
- The market closed on a capitalization of K62,694,690,507 including Shoprite Holdings and K28,455,484,527 excluding Shoprite Holdings.
Financial Insight Analysis
CEC Zambia returned to the top of the heap as most traded and highest turnover for week 20. With only 9 companies traded during the monthly, there was a fall in turnover and volume of shares traded by 84% and 82% respectively. Curiously, the plunge on the equity side was matched by a quantum surge on the bond market with a surge of 1635% in the total face value of bonds traded from the previous week. It is clear investors opted for fixed income as the bond market continues to dominate financial markets.
In terms of buying and selling, the Zambrew security posted the high weekly gain in bid price with a weekly net change of K2.50 per share closing the week with a share price of 14.45. This signals capital gains for the holders of this security. Zambrew had the highest market cap for all the companies traded at K7.89 Billion or 39% of the total traded companies market cap.
Important Announcements
BAT Zambia – Duo Director Exit
The Board of Directors of British American Tobacco wishes to announce the resignation of Mr Nigel Curran as Finance Director of the Company and Executive Director of the Board effective 30 April 2019. Mr Curran is relocating to the Republic of South Africa where he will take up a different role within the Group. Additionally, the Board wishes to announce the retirement of Mr Alexander Carpenter as Non-Executive Director of the Board effective 30 April 2019. Furthermore, the Board would like to announce the appointment of Mr Michael Ellis as Finance Director of the Company and Executive Director of the Board and Mr Alejandro Riomayor as Non-Executive Director of the Board effective 30 April 2019.