Lusaka Securities Exchange Achieves Record Highs, Surpassing 15,000 Points in August
The Lusaka Securities Exchange All Share Index (LASI) continued its robust performance in August, surpassing the 15,000-point mark for the first time in its history. The index closed the month at an all-time high of 15,146.27 points, representing a significant 40% gain year-to-date.
Total market capitalization also saw substantial growth, closing at K140 billion—a 22% increase from the previous month and a remarkable 63% cumulative growth for 2024. This surge in market value was driven by rising share prices across most counters on the board, highlighting the strong performance of the equity market.
Among the key drivers of this growth was Shoprite Holdings, which recorded the largest percentage increase in August, with its share price rising by 56%, from K80.00 to K125.00. Other notable gains were seen in Bata Shoe Company (up 20%), Copperbelt Energy Corporation (up 19%), and Chilanga Cement (up 18%).
On a year-to-date basis, Pamodzi Hotels emerged as the top performer, boasting a staggering 551% gain. Puma Energies, Standard Chartered Bank Plc, Bata Shoe Company, and Copperbelt Energy Corporation also posted significant gains, demonstrating the resilience and potential of the Lusaka Securities Exchange.
Despite these positive trends, some stocks faced declines in August. ZCCM-IH saw a K10.00 drop, losing 16% of its value, while Standard Chartered Bank and AECI experienced decreases of 14% and 13%, respectively.
Retail investors remained highly active, accounting for 90% of trades during the month, though institutional investors dominated in terms of total market turnover, contributing 68%. Notably, foreign institutional investors played a significant role on the sell side, accounting for 51% of trades.
In the Bond Market, August experienced a decline in activity, with a 23% decrease in the number of bond trades and a 19% drop in the total face value traded. Despite this, the overall outlook for the Lusaka Securities Exchange remains positive.
The pipeline for new listings is active, and the Exchange plans to enhance liquidity by leveraging technology to increase direct market access for both local and foreign participants.
Nicholas Kabaso, Chief Executive Officer of the Lusaka Securities Exchange, expressed optimism for the remainder of the year, noting that continued investor participation and renewed interest from companies seeking to raise capital are expected to sustain the momentum.
