Lusaka Securities Exchange All Share Index Reaches Record High in February
The Lusaka Securities Exchange (LuSE) witnessed a historic moment as the All Share Index (LASI) closed February at an all-time high of 12,071.82 points, marking a remarkable year-to-date gain of 12%.
This surge in the LASI reflects increased investor confidence and positive market sentiments driven by key policy pronouncements.
Nicholas Kabaso, CEO of LuSE, attributed the bullish trend to growing investor confidence and heightened participation from Zambian individuals. He noted that the market rally has been buoyed by positive sentiments surrounding policy directions and an uptick in investor activity.
Throughout February 2024, the LuSE recorded a total of 2,266 equity transactions, amounting to a turnover exceeding K431 million. Notably, retail clients contributed significantly to the total number of trades, representing 96% of buys and 89% of sells. However, institutional clients dominated the value and turnover of trades, accounting for 99% of transactions.
Mr. Kabaso highlighted the significance of these statistics as indicators of the burgeoning opportunities for households to create wealth through active participation in the Securities Exchange. He emphasized the potential for individuals to invest in entrepreneurial ideas presented by listed companies.
The month of February saw a record-breaking daily turnover and quantity on the 27th, attributed to a significant trade involving Pamodzi Hotels Plc (PMDZ). Additionally, Copperbelt Energy Corporation (CECZ) led in the number of trades, followed by ZANACO (ZNCO) and Standard Chartered Bank (SCBL).
In terms of price changes, ZANACO experienced the highest positive change, followed by Standard Chartered Bank. Conversely, Zambia Sugar Plc (ZSUG) and Airtel Networks Zambia Plc (ATEL) recorded declines.
Looking ahead, Mr. Kabaso expressed optimism regarding the prospects of more companies listing on the Exchange, citing increased commitments from various businesses.
He underscored the Securities Market’s role in driving Zambia’s economic growth potential, highlighting its capacity to provide affordable and sustainable capital-raising opportunities for businesses amidst high debt funding costs.
In conclusion, the LuSE’s record-high performance in February reflects a vibrant and dynamic market poised for further growth and development, positioning itself as a key player in Zambia’s economic landscape.
