February continued to see a decline in the number of weekly traded shares on the LuSE with a 15% decline despite turnover marginally rebounding by 2% fuelled by high value shares being traded.
Bond Activity
During the week, bonds of total face value of K53,294,000 were transacted in 11 trades, yielding a market value sales of K37,636,000.
Companies Traded
The following companies had shares being traded during the week
- Bata
- British America Tobacco
- CEC Zambia
- CEC Africa
- Standard Chartered Bank
- PUMA
- Real Estates Investment Zambia
- ZANACO
- Zambian Breweries
- ZAMEFA (Metal Fabricators Zambia)
Daily Stock Market Diary
Monday 18
- 16 trades recorded during the week
- 21,894 shares were transacted yielding a market turnover of K17,246.
- Lafarge and PUMA recorded a losses of K0.01 each.
- Trading activity was also recorded in CEC Zambia, Real Estate Investments Zambia, Standard Chartered Bank, Zanaco and CEC Africa on the quoted tier.
- 10,300 CCAF shares traded on the Quoted tier, generating a total turnover of K2,060.
- The LuSE All Share Index (LASI) closed at 5,766.35 points down by 0.03% from its previous close of 5,768.03 points.
- The market closed on a capitalization of K62,647,293,514 including Shoprite Holdings and K28,408,087,534 excluding Shoprite Holdings.
Tuesday 19
- 2 trades recorded on the day
- 6,300 shares were transacted, yielding a market turnover of K7,210.
- A share price gain of K4.50 was posted in AELZ.
- Trading activity was recorded in Zanaco.
- The LuSE All Share Index (LASI) closed at 5788.43 points up by 0.38% from its previous close of 5,766.35 points.
- The market closed on a capitalization of K62,739,123,214 including Shoprite Holdings and K28,499,917,234 excluding Shoprite Holdings.
Wednesday 19
There were no trades on the day.
Thursday 20
- 26 trades recorded on the day
- 8,547 shares were transacted, yielding a market turnover of K23,524, of which Standard Chartered Bank contributed 45% to the total shares traded, trading 3,850 shares at a share price of at K2.56 per share
- Metal Fabricators Zambia (Zamefa), Standard Chartered Bank Limited and Zambia Breweries recorded losses of K0.01, K0.01 and K0.04 respectively.
- Trading activity was also recorded in Airtel, British Africa Tobacco, CEC Zambia, PUMA, Zambeef and Zanaco.
- The LuSE All Share Index (LASI) closed at 5779.05 points down by 0.16% from its previous close of 5788.43 points. The LUSE ALSI is up 10.11% in local currency terms, and up 10.29% in USD currency terms
- The market closed on a capitalization of K62,700,113,414 including Shoprite Holdings and K28,460,907,434 excluding Shoprite Holdings.
Friday 22
- 15 trades recorded on the last week day of trading
- 10,151 shares were transacted, yielding a market turnover of K18,368. Trading activity was recorded in BATA, CEC Zambia and Zambia Breweries.
- The LuSE All Share Index (LASI) maintained its previous close of 5779.05 points as there were no price movements.
- The market remained on a capitalization of K62,700,113,414 including Shoprite Holdings and K28,460,907,434 excluding Shoprite Holdings.
Financial Insight Analysis
In a week that saw turnover edge up by 2% in week 3 compared to week 2 of February 2019, Financial Insight continues to see a continued decline in the number of shares being traded on LuSE. With 10 company’s shares being traded, the bearish outlook continued for 3 week in a row.
With only one more trading week remaining, February is poised to be the weakest month of trading thus far indicative of a trading slowdown in the first quarter of the year. This was further exacerbated by week 3 also recording the first day since the beginning of the year that saw no trades being made on the exchange.
The week also saw falls in share prices of 3 companies. In addition to impacting the market capitalisation of the affected companies as well as shaving off value for holders of these securities, the fall in share price has an impact on the LuSE index especially if the shares affected form part of the weighted shares used in calculating the index. Being a buyers and sellers’ market, thus far share prices of securities on the LuSE continue to be influenced by supply and demand.
Capital gains were recorded in the AEL Zambia security. Although there were no trades recorded for AEL Zambia during the week, the share price rose by 23% for the first time in over a year. This is the highest price the security has traded over the last 12 months with the previous peak being recorded in October 2018. AEL’s market capitalization now stands at US$ 38 million (ZMW 459.1 m) representing a 25% increase for shareholders of this stock.
Over the last 12 months, the AEL security has seen its highest offer price at K24 and lowest offer price at K16.50. With the best offer price being K22.40, it is an indicator that sale transactions are closing with prices north of K22.
Important Announcements
First Quantum Minerals Ltd. announced that its Board of Directors has approved a final dividend of CDN$0.005 per share in respect of the financial year ending December 31, 2018. The dividend will be paid on May 7, 2019 to shareholders of record on April 15, 2019. This, together with the interim dividend of CDN$0.005, makes a total of CDN$0.01 for the 2018 financial year. The Company has established a Dividend Reinvestment and Share Purchase Plan (the “Plan”) for its Canadian resident shareholders (“Eligible Shareholders”). This is according to SENS Announcement published on 18th February 2019.
