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LuSE Reports Positive Performance in Q1 2024

The Lusaka Securities Exchange (LuSE) has released its quarterly report for the first quarter of 2024, showcasing a robust performance in various market indicators. 

Total market capitalisation for Q1 2024 stood at K97.76 billion, marking a significant increase of 10.2% compared to the previous quarter. This growth, attributed to positive market performance and recent asset acquisitions under Real Estate Investments Zambia PLC (REIZ), exceeded the prior year’s quarter one movement of 2.98%. 

Additionally, the Lusaka Securities Exchange All Share Index closed at 17.3%, making it the second-best performing quarter since 2000. Year-on-year, the index experienced a notable increase of 68%. 

Despite positive market capitalisation and index performance, the market saw a decrease in turnover during Q1 2024 compared to the same period in 2023. Turnover decreased to K467.94 million from K653.52 million, representing a decline of 28.4%. 

The top five traded companies during the quarter included Taj Pamodzi Hotel Plc, Chilanga Cement Plc, Copperbelt Energy Corporation Plc, Real Estate Investment Zambia Plc, and Zambia Forestry and Forest Industries Corporation Plc. Notably, Taj Pamodzi Hotel Plc contributed 88% of the total turnover for the quarter. 

Foreign institutional investors dominated turnover contribution during the quarter, accounting for 91.5% of share turnover. Local institutional investors contributed 4.6%, bringing the total institutional investor contribution to 95.6%. Retail investors, both foreign and local, collectively contributed 3.84% towards turnover for the quarter. 

The total face value of government bonds traded on the secondary market amounted to K7.54 billion, marking a decline of 30% compared to the same quarter in 2023. No trading activity was recorded under Corporate Bonds during the period. 

The LuSE remains optimistic about the market outlook for the remainder of the year, citing improving economic fundamentals such as debt restructuring and the re-operationalization of key mines. 

The Exchange also anticipates increased activity in initial public offerings (IPOs) and Corporate Bonds, with discussions underway to launch the first commodity-backed Exchange Traded Fund (ETF) in 2024.

Nicholas Kabaso, Chief Executive Officer of the Lusaka Securities Exchange, expressed confidence in the market’s resilience and growth prospects, highlighting the Exchange’s commitment to fostering a conducive environment for investment and capital market development.

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