In the final week of trading in our local capital markets, August equity and bond trading sales were 20% and 0.5% weaker respectively compared to the previous month.
Equity Markets Summary
In the week ended 30th August 2019, a total of 5,181,245 shares were transacted in 92 trades, yielding a market turnover of K8,806,687. Trading activity was recorded in AEL Zambia, AIRTEL, CEC ZAMBIA, PAMODZI, PUMA, REIZ, STANDARD CHARTERED BANK LIMITED, ZAMBEEF, ZAMBIAN BREWERIES, ZAMEFA, ZCCM-IH and CEC AFRICA on the quoted tier. This was the highest number on record of company securities being traded during the month.
The LuSE All Share Index (LASI) closed at 4,427.56 points. The market closed on a capitalization of K57,235,317,997 including Shoprite Holdings and K22,996,112,017 excluding Shoprite Holdings.
Bond Markets Summary
During the week, Corporate bonds of total face value of K64,787,000 were transacted in 22 trades, yielding a market value sales of K34,620,000 which was 71% higher than the previous week’s sales. Bond trading occurred on all the listed bond instruments with the 7 year bond which yields a couple of 12% dominating trade sales.
Weekly Stock Market Diary
Monday 26th
The week opened with 24 trades being recorded on the day. 31,183 shares were transacted, yielding a market turnover of K36,302. Share price losses of K0.01 and K0.31 were recorded in Copperbelt Energy Corporation and Zambeef. Trading activity was also recorded in Airtel, Pamodzi, PUMA, ZCCM and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) closed at 4,431.57 points down by 0.59% from its previous close of 4,457.88 points. The market closed on a capitalization of K57,251,987,797 including Shoprite Holdings and K23,012,781,817 excluding Shoprite Holdings.
Tuesday 27th
On the second day of trading, 17 trades were recorded with 1,666 shares being transacted, resulting in a market turnover of K13,224. A share price gain of K0.06 was posted in Standard Chartered Bank Limited. Trading activity was also recorded in Copperbelt Energy Corporation, Zambia Breweries and Zambia Consolidated Copper Mines. The LuSE All Share Index (LASI) closed at 4,455.62 points up by 0.54% from its previous close of 4,431.57 points. The market closed on a capitalization of K57,352,006,597 including Shoprite Holdings and K23,112,800,617 excluding Shoprite Holdings.
Wednesday 28th
In mid week, 44 trades were recorded with 49,169 shares being transacted, yielding a market turnover of K335,857. Trading activity was recorded in AEL Zambia, Copperbelt Energy Corporation, Real Estate Investments Zambia, Standard Chatered Bank Limited, Zambia Breweries, ZAMEFA and CEC Africa on the quoted tier. The LuSE All Share Index (LASI) maintained its previous close of 4,455.62 points. The market remained on a capitalization of K57,352,006,597 including Shoprite Holdings and K23,112,800,617excluding Shoprite Holdings.
Thursday 29th
On the penultimate trading day of the week, 7 trades were recorded with 5,098,227 shares being transacted, resulting in a market turnover of K8,421,305. A share price loss of K0.07 was recorded in Standard Chartered Bank Limited. Trading activity was also recorded in AEL Zambia. The LuSE All Share Index (LASI) closed at 4,427.56 points down by 0.63% from its previous close of 4,455.62 points. The market closed on a capitalization of K57,235,317,997 including Shoprite Holdings and K22,996,112,017 excluding Shoprite Holdings. Tesla is among automakers most affected by the U.S.-China trade tensions, because it has no local production yet and therefore gets directly hit by any increases in tariffs. China threatened last week to increase duties on U.S.-made cars to as high as 50% in retaliation for President Donald Trump’s latest planned levies on Chinese goods.
Friday 30th
There were no trades on Friday. The LuSE All Share Index (LASI) maintained its previous close of 4,427.56 points. The market closed on a capitalization of K57,235,317,997 including Shoprite Holdings and K22,996,112,017 excluding Shoprite Holdings. The market cap has continued to weaken posting a 0.5% drop from the previous week.
The share prices for traded securities was as follows at the close of the month. Airtel and ZCCM IH securities were the most expensive shares traded during the week.
August trading weaker for equities but….
With the month of August at an end, equities trading despite the 20% and 69% slump in sales and trading volume respectively, the outlook of Quarter 3 looks bullish when compared to the previous quarter. That is because two consecutive months have posted turnover of over K20 million.
During the month, outlier acquisition of Zanaco and Standard Chartered Bank securities were the reason why week 2 and week 5 outperformed the rest of the securities traded.
On the bond market side, the corporate securities marginally recovered in sales during the month of august. However, sales have been dropping by 17% on average on a month by month basis over the last 3 months signalling liquidity constraints. Analogous under subscription has also been noted in the Government sales during the same period.
Important Announcements
In accordance with Section 3.4(b) Lusaka Securities Exchange (“LuSE”) Listings Requirements, the Board of Directors of ZCCM-Investments Holdings PLC (the “Company” or “ZCCM-IH”) hereby advises the Shareholders of the Company that the Earnings Per Share (“EPS”) for the financial year ended 31 March 2019 is expected to be approximately 45% lower than the financial year ended 31 March 2018.
CEC Records increase in revenue at half year
In Zambian Kwacha terms, revenue at ZMW2.561 billion increased 25% from ZMW2.044 billion; whereas a reduction of 1% was registered in United States Dollars (USD) from USD208.253 million to USD206.437 million compared to the same period in 2018. The increase in Kwacha revenue is attributed to a 26% depreciation of the currency. The reduction in USD revenue was a result of reduced power consumption by some of our mining customers.