The equities market in Week 4 of July 2019 experienced another Bullish spike in performance following a 12,983% increase in turnover from the previous week. However, the bond market hit bear territory as sales in corporate bonds slumped by 90% from the previous week. This meant that the equities market eclipsed the bond market by 55%.
Equities Market Summary
In the week ended 26th July 2019, a total of 6,713,294 shares were transacted in 81 trades, yielding a market turnover of K12,164,573. Share price losses of K0.05 and K0.01 were recorded in BATA and CEC Zambia respectively. Trading activity was also recorded in AEL Zambia, BATA, CEC Zambia, PUMA, Standard Chartered Bank Limited and ZCCM-IH. The LuSE All Share Index (LASI) closed at 4,563.30 points. The market closed on a capitalization of K57,79 Billion including Shoprite Holdings and K23,56 Billion excluding Shoprite Holdings.
Bond Market Summary
During the week, bonds of total face value of K17,452,000 were transacted in 15 trades, yielding a market value sales of K10,041,000. Bond market sales were down 90% from the previous week recording the weakest performance of July 2019. The only traded securities were on the 11, 12, and 13 per cent coupon corporate bonds.
Weekly Stock Market Diary
Monday 22nd
The week opened with 5 trades recorded on the day. 7,192 shares were transacted, resulting in a market turnover of K12,190. Trading activity was recorded in Copperbelt Energy Corporation and ZCCM. The LuSE All Share Index (LASI) maintained its previous close of 4,568.12 points as there were no share price movements. The market remained on a capitalization of K57,819,901,484 including Shoprite Holdings and K23,580,695,504 excluding Shoprite Holdings.
Tuesday 23rd
On the day, 58 trades were recorded with 5,945,952 shares were transacted, resulting in a market turnover of K10,702,431. This was the highest trading activity of the week with trading activity recorded in Cavmont Capital Holdings Zambia, Copperbelt Energy Corporation, PUMA and Standard Chartered Bank Limited. The LuSE All Share Index (LASI) maintained its previous close of 4,568.12 points as there were no share price movements. The market remained on a capitalization of K57,819,901,484 including Shoprite Holdings and K23,580,695,504 excluding Shoprite Holdings.
Wednesday 24th
At midweek, 4 trades were recorded with 4,080 shares being transacted, resulting in a market turnover of K4,039. Trading activity was recorded in PUMA for the second time during the week. The LuSE All Share Index (LASI) maintained its previous close of 4,568.12 points as there were no share price movements. The market remained on a capitalization of K57,819,901,484 including Shoprite Holdings and K23,580,695,504 excluding Shoprite Holdings.
Thursday 25th
In 10 trades recorded on the day, 734,297 shares were transacted, resulting in a market turnover of K1,406,722. Share price losses of K0.05 and K0.01 were recorded in BATA and Copperbelt Energy Corporation respectively. This was the first time the BATA security has dipped subtly since peeking on June 24th this year. Trading activity was also recorded in AEL Zambia and Standard Chartered Bank Limited. The LuSE All Share Index (LASI) closed at 4,563.30 points down by 0.11% from its previous close of 4,568.12 points. The market closed on a capitalization of K57,799,846,098 including Shoprite Holdings and K23,560,640,118 excluding Shoprite Holdings.
Friday 26th
In 4 trades recorded today, 21,773 shares were transacted, resulting in a market turnover of K39,191. Trading activity was only recorded in SCBL. The LuSE All Share Index (LASI) maintained its previous close of 4,563.30 points as they were no price changes. The market remained on a capitalization of K57,799,846,098 including Shoprite Holdings and K23,560,640,118 excluding Shoprite Holdings.
With only 6 securities traded during the week, ZCCM IH had the highest share price at the close of the week trailed by Puma which had the lowest.
Standard Chartered Dominates Week 4
The penultimate week of July saw the Standard Chartered Bank security dominate trading on the LuSE. Week 4’s surge on the equities side backed by the banks trades helped the equities market edge over the bond market which experienced a slump.
However, based on the pattern of trades, this remains largely an outlier with prospects of the equities market moving back to its usual equilibrium.
However, this now means that July will go on record has the best performing month over the last 3 months which has seen a sharp albeit steady increase on the equities trading. Conversely, the bond market fortunes have gradually been diminishing as sales have been on a steady decrease since May.
Important Announcements
African Banking Corporation (Atlas Mara) Follow up Cautionary Note
The holders of the listed notes, as well as the other market participants, are referred to the Cautionary Announcement issued on 9th May 2019 in which the Board of Directors of African Banking Corporation Zambia Limited informed them that Atlas Mara Limited has signed a binding term sheet with Equity Group Holdings Plc for a share swap to exchange certain banking assets which include the Company (“the Transaction”).
Change in Directorate at Zambian Breweries
Pursuant to section 3.59 of the LuSE Listing Requirements, the Board of Directors of Zambian Breweries PLC (“the Board”) wishes to announce the appointment of Mr Jito Kayumba as a non-executive Director of the Board effective 24th July 2019.