In the first week of September 2020 bond trading, the bond market completely dominates the equities market as it recorded a score of 98% to 2%. We see the complete opposite in comparison to the first week of August bond trading as it started the month on a high note recording a score of 92% on the equities market to 8% on the bond market. Hoping to see a turnaround further through the month of September 2020 bond trading. The low scores can also be an attribute of certain companies securities recording lower revenues and turnovers, for instance, ZAMBIAN BREWERIES, as this reduction is due to the fact that their trading activity (sales volume and revenues) has dramatically reduced against their normal sales trends, ending our first half of this year with a modest 4% volume growth against prior year (PY), but with a significant shortfall of 10% against their budget.
Equity Market Update
In the week ended 4th September 2020, a total of 1,049,613 shares were transacted in 45 trades, yielding a market turnover of K538,552. Trading activity was recorded in AFRICA EXPLOSIVES LIMITED ZAMBIA. COPPERBELT ENERGY CORPORATION, LAFARGE, ZAMBEEF, ZAMBIA BREWERIES, ZANACO and ZAMBIA FORESTRY and FOREST CORPORATION. The Index (LASI) closed at 3,838.66 points. The market closed on a capitalization of K55,528,786,760 including Shoprite Holdings and K21,289,580,780 excluding Shoprite Holdings.
Bond Market Update
During the week, bonds of total face value of K32,431,000 were transacted in 10 trades, yielding a market value sales of K22,499,000.
Important announcements
The Board of Directors of Zambian Breweries Plc (“the Board”) wishes to advise the Shareholders that for the period ending 30th June 2020, the basic earnings per share is expected to be 108% lower than that of the corresponding period last year for both the group and for the Company.
Further to the cautionary announcement released on the Stock Exchange News Service (“SENS”) of the LUSE on 8 July 2020, the transaction announcement and the announcement relating to the non-binding expression of interest received from Capricorn Group Limited (“CGP”), the majority shareholder of CCHZ, in terms of which CGP intended to make an offer to acquire all of the outstanding ordinary shares in CCHZ not currently held by CGP (“Offer Shares”) released on SENS on 6 August 2020, shareholders of CCHZ are hereby advised that the Board of CCHZ received a binding conditional offer from CGP on 28 August 2020, in terms of which CGP offers to acquire all of the Offer Shares, subject to the successful passing of the Delisting Resolution as set out in paragraph 2 below (“Conditional Offer”).
MADISON FINANCIAL SERVICES PLC
Shareholders are referred to the Further Cautionary Announcement issued on 19 May 2020 wherein the Board of Directors of Madison Financial Services PLC (“the Board”) (“MFS” or “the Company” or “the Group”) informed the shareholders and the market that the Board and Management of MFS has a mandate to explore and identify specific assets that would be earmarked and considered for disposal by the Company in accordance with the LuSE Listing Requirements.
ZCCM INVESTMENTS HOLDINGS PLC
The Board of ZCCM Investments Holdings Plc (“the Board”) (“ZCCM-IH” or “the Company”) wishes to advise Shareholders and the market that the Company is in discussions with Glencore Finance (Bermuda) Ltd regarding the future of Mopani Copper Mines Plc (“Mopani”). Glencore Finance is the major shareholder of Carlisa Investments Corporation which in turn is the majority shareholder of Mopani. The circumstances relating to the Company and the full impact of the discussions are currently being determined and may have a material effect on the price of the Company’s securities.