LuSE Market Capitalization Breaks K100 Billion Barrier as All Share Index Surges
The Lusaka Securities Exchange (LuSE) has achieved a historic milestone as its market capitalization surges to an unprecedented K100 billion, a remarkable feat in the exchange’s history.
This achievement accompanies the LuSE All Share Index (LASI) concluding April with an outstanding year-to-date growth of 18.7%, driven by substantial capital gains across various sectors.
The month of April witnessed robust trading activity, with a total of 2,897 equity trades recorded, representing an 18% increase compared to the previous month.
This surge in trading volume amounted to over 4 million shares changing hands, resulting in a market turnover exceeding K36 million, a substantial leap from the K16 million turnover in the preceding month.
Nicholas Kabaso, the Chief Executive Officer of the LuSE, expressed his enthusiasm regarding the market’s performance, highlighting key trading movements during April. Notably, April 11th saw the highest daily turnover of the month, with trades in Airtel driving the turnover to K13,110,130.15.
Additionally, April 16th marked the day with the highest volume of shares traded, with Copperbelt Energy Corporation Zambia (CECZ) dominating the market with 1,102,385 shares exchanged.
CECZ emerged as the leader in trading activity, with 726 trades recorded, followed by Zanaco (ZNCO) and Standard Chartered Bank Plc (SCBL) with 678 and 574 trades, respectively.
While the equity market thrived, the bond market also witnessed a notable uptick in activity, recording a total of 306 bond trades in April, representing a 20.5% increase from the previous month.
Despite minimal changes in turnover and face value traded, investor sentiment remained overwhelmingly positive, with retail investors contributing significantly to market turnover.
Individual retail investors accounted for 98% of bids and 82% of offers, contributing 30% to the total market turnover, while institutional investors contributed 70%.
The surge in individual participation can be attributed, in part, to the seamless trading experience facilitated by the LuSE’s mobile application, with plans underway to launch online trading to further enhance investor accessibility.
Looking ahead, Kabaso emphasized the continued growth momentum of the equity market, driven by increased investor optimism over macroeconomic fundamentals.
He underscored the LuSE’s commitment to providing businesses with sustainable and affordable capital-raising opportunities, positioning equity as an attractive avenue for businesses seeking long-term capital solutions.
