The equities market posted a stronger performance in week 2 of September compared to the opening. The bond market marginally weakened in comparison. Despite edging up, Financial analytics Zambia indicates that the distribution of equities and bonds in week two in terms of turnover was 93% to 7%.
Equity Market Summary
In the week ended 13th September 2019, a total of 940,049 shares were transacted in 156 trades, yielding a market turnover of K1,572,605. Trading activity was recorded in Airtel, CEC Zambia, PUMA, Lafarge, Standard Chartered Bank, Zambeef, Zambian Breweries and ZCCM-IH.
The equities market was 45% stronger in turnover in comparison to the K1.087 million posted in the previous week.
The LuSE All Share Index (LASI) closed at 4,406.72 points. The market closed on a capitalization of K57,147,093,499 including Shoprite Holdings and K22,907,887,519.84 excluding Shoprite Holdings.
Bond Market Summary
During the week, corporate bonds of the total face value of K32,013,000 were transacted in 27 trades, yielding a market value sales of K19,960,000.
The bond market was 3% weaker than the previous week despite recording more trades.
Perspective
Equities trading was dominated by Standard Chartered Bank which recorded K1.34 million in turnover in just 35 trades. It was followed by CEC Zambia which recorded K146 thousand in 90 trades. Zambeef was the weakest during the week with only 1 trade that yielded K2000 in turnover.
ZCCM IH was the highest prices stock traded during the week followed by AEL Zambia. However, Zambrew had the highest PE ratio which indicates that investors believe this price is fairly high or anticipate higher returns.
The corporate bond market marginally underperformed during the week. It appears to be holding steady as investors continue to grapple with tight liquidity. All bond categories had trades except for the 10 year one during the week. The most popular for investors was the 7 and 15-year bonds each yielding 12 and 14 percent on their coupons.
Important Announcements
Director Resigns at REIZ
Pursuant to section 3.59 of the LuSE Listing Requirements, the Board of Directors of Real Estate Investments Zambia Plc (“REIZ” or the “Company”) wishes to announce the resignation of Dr Elizabeth Lungu-Nkumbula as a non-executive director of the Board effective 10 September 2019.
PUMA Half Year 2019 performance
The Company recorded for the half-year ended 30 June 2019 a profit before tax of K78.27 million compared to K61.48 million recorded in the previous financial year. Volumes were 3.8% lower than those achieved for the same period last year.