“LuSe records 10% increase in market capital”

…Kabaso assures investors of positive growth outlook expected for 2024

By Francis Maingaila

Lusaka, Zambia24 – (04-04-2024) – The Lusaka Securities Exchange demonstrated robust expansion in the initial quarter of 2024, indicating encouraging potential for the rest of the year, with an impressive 10.2 percent upswing.

Nicholas Kabaso, the Chief Executive Officer (CEO) of the Lusaka Securities Exchange (LuSE), informed journalists during a media briefing that the total market capitalization at the end of Q1 2024 reached K97.76 billion, reflecting a 10.2% increase compared to the previous year.

Kabaso attributes this growth to the buoyancy of market conditions and the successful completion of asset acquisitions by Real Estate Investment Zambia Plc.

Despite this notable achievement, Kabaso reveals a contrasting trend in turnover, which experienced a decline of 28.4 percent compared to the same period in 2023, plummeting to K467.94 million from K653.52 million.

Analyzing investor behavior, Kabaso discloses that the bulk of turnover originated from foreign institutional investors, constituting 91.5 percent, while local retail investors accounted for a mere 4.6 percent.

Kabaso projects a favorable market outlook for the remainder of 2024, citing promising economic indicators such as ongoing debt restructuring initiatives and the revitalization of key mining ventures. These factors collectively set the stage for continued growth and stability in the LuSE market throughout the year.

He highlighted that the market outlook is optimistic, driven by improving economic fundamentals such as debt restructuring and the re-operationalization of key mines.

Investors can anticipate continued opportunities in Zambia’s securities market, he added.

The All Share Index closed at 17.3%, marking the second-best performance since 2000, with a year-on-year increase of 68%.

Turnover decreased to K467.94 million, with the top 5 traded companies being Taj Pamodzi Hotel Plc, Chilanga Cement Plc, Copperbelt Energy Corporation Plc, Real Estate Investment Zambia Plc, and Zambia Forestry and Forest Industries Corporation Plc.

According to Kabaso, foreign institutional investors accounted for 91.5% of share turnover, while local institutional investors contributed 4.6%.

He expressed the view that government bonds traded on the secondary market amounted to K7.54 billion, marking a 30% decline from the same quarter in 2023.

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