In the first full 5 day week of November, 16 companies had their securities traded on the Lusaka Securities and Exchange making it the first week in 2019 to have the highest number of securities being traded.
Out of the total traded, 11 companies suffered share price loses while AEL Zambia was the only security to gain in value by K1 following the announcement of an interim dividend being paid in November.
Equity Markets Update
In the week ended 8th November 2019, a total of 668,354 shares were transacted in 128 trades, yielding a market turnover of K1,665,819. Trading activity was recorded in AEL Zambia, AIRTEL, BATA, CEC Zambia, FQMZ, LAFARGE, MADISON FINANCIAL SERVICES, NATIONAL BREWRIES, PUMA, REIZ, STANDARD CHARTERED BANK, ZCCM IH, ZAMEFA, ZANACO and ZAMBIA SUGAR.
The LuSE All Share Index (LASI) closed at 4,310.66 points. The market closed on a capitalization of K56,698,375,131 including Shoprite Holdings and K22,459,169,151.35 excluding Shoprite Holdings.
Bond Market Update
During the week, bonds of total face value of K14,301,490 were transacted in 6 trade, yielding market value sales of K9,314,280.
Perspective
The corporate bond market began November the same way it had ended October. Bearish. Liquidity constraints remain the key reason for this performance and investors opting for Government Fixed income securities that are seeing high yields.
The equities market, on the other hand, has had a boost of confidence with more company securities being traded on the LuSE than ever before. One may argue that with two companies announcing dividends (AEL and Zambia Sugar), rational investors would be looking at cashing before the shutout period for shareholders that are eligible for a dividend.
Of the traded securities, AIRTEL, ZAMBREW and REIZ, had the highest Price to Earnings (PE) ratios during the week. These securities can be deemed premium price with moderate earnings.
The MADISON FINANCIAL security had the highest volume of shares being traded.
Important Announcements
Swanepoel retires from Cavmont Capital Board
In accordance with Section 3.59 of the Lusaka Securities Exchange Listing Rules, the Board of Cavmont Capital Holdings Zambia Plc (“the Board”) (“CCHZ” or “the Company”) wishes to announce the retirement of Mr Johannes Swanepoel as a Non-Executive Member of the Board effective from 05 November 2019.
Luswili joins the Investrust Board
In accordance with Section 3.59 of the Lusaka Securities Exchange Listing Rules, the Board of Directors of Investrust Bank Plc (“the Board”) wishes to announce the appointment of Mrs. Deophine Mulenga Luswili as a Non-Executive Director of the Company effective 22nd October 2019.