With only one day of trading left for September 2019, the fourth week of the month recorded the weakest performance in the same week the Ministry of Finance announced a K106 billion budget for 2020. Equities were down by 85% while the bond market slipped by 25% in sales corporate paper.
Equities Market Update
In the week ended 27th September 2019, a total of 71,971 shares were transacted in 51 trades, yielding a market turnover of K141,659. Trading activity was recorded in AEL Zambia, CEC Zambia, STANDARD CHARTED BANK and ZANACO BANK. The LuSE All Share Index (LASI) closed at 4,395.34 points. The market closed on a capitalization of K57,099,736,193 including Shoprite Holdings and K22,860,530,213 excluding Shoprite Holdings.
Bond Market Update
During the week, bonds of total face value of K16,557,000 were transacted in 14 trades, yielding a market value sales of K10,481,100.
Perspective
In the final week of trading, the equities market saw only 4 company securities being traded in what is now the weakest trading week of September 2019. The corporate bond market also suffered the same fate which extended its continued month on month disappointing run.
Of the traded securities on the equities market, Standard Chartered had the highest volume of trades. AEL was the most expensive stock (albeit giving the best best return based on its high earnings per share) traded but it was Standard Chartered’s security that had the highest Price to Earning ratio signaling an overvalued security. CEC Zambia had the largest number of trades when compared to the other 3 traded securities during the week.
The continued weak performance of equities on the LUSE has compounded the effects on the all-share index which is currently at its lowest level in 2019.
Important Announcements
Pursuant to section 3.59 of the LuSE Listing Requirements, the Board of Directors of Lafarge Zambia PLC (“Lafarge” or the “Company”), wishes to announce the appointment of Mr. Ahmed Khalifa as Chief Financial Officer effective 26 September 2019.
In accordance with the Lusaka Securities Exchange (“LuSE”) Listings Requirements, the Board of Directors of Airtel Networks Zambia Plc (“Airtel” or “the Company”) hereby advises the Shareholders that the Company expects to report a loss and that the Earnings per Share (“EPS”) for the half-year ended 30 June 2019 is expected to be approximately 122.22 % lower than the half-year ended 30 June 2018.