LuSE Rallies on Strong Turnover, Dividend Boosts and Sector Gains
The Lusaka Securities Exchange (LuSE) posted positive momentum this week as the All Share Index (LASI), excluding ZCCM-IH, edged up 0.51% week-on-week to close at 21,050.27 points. Improved investor sentiment and notable trading volumes marked the week ending July 25, 2025, signaling a moderate bullish tone in Zambia’s equity markets.
Turnover surged to ZMW 134.28 million (USD 5.74 million) from last week’s ZMW 107.04 million (USD 4.57 million), with 8.96 million shares traded across listed companies. The most significant contributor to turnover was Copperbelt Energy Corporation (CEC), accounting for a dominant 75.97% of the total market value with a turnover of over ZMW 102 million.
On the price movers’ board, ZAMEFA led the gainers, rising 16.67% to close at ZMW 14.00 (USD 0.60), followed by ZCCM-IH, which jumped 8.91% to ZMW 110.00. CEC and ZAFFICO also posted marginal gains. However, ZAMBEEF recorded the week’s steepest loss, declining by 7.89% to ZMW 1.75, amid broader volatility in the agricultural sector.
The Real Estate Investment Trust (REIZ USD) saw 60,405 units traded with a turnover of USD 3,854 (ZMW 90,032), though no price movement was recorded. On the currency front, the Zambian Kwacha weakened against major global currencies, falling 1.79% against the USD, 2.24% against the Euro, 1.49% against the Pound, and 1.15% against the Rand, reflecting pressure on the foreign exchange market.
ZCCM-IH declared a final dividend of ZMW 3.29 per share for the financial year ended December 31, 2024. The ex-dividend date is August 6, 2025, with payments expected by August 11, 2025, and staggered distributions for shareholders on foreign exchanges.
In the manufacturing sector, National Breweries Plc (Natbrew) released its FY 2024 audited financials, reporting K435.8 million in revenue and a significant operating loss of K331.3 million, translating into a loss per share of K7.02. The company attributed its weak performance to operational disruptions from drought and power supply constraints but remains focused on product innovation and distribution expansion. Natbrew has scheduled its 57th AGM virtually on August 14, 2025.
Additionally, ZAFCO Plc issued a cautionary notice regarding ongoing strategic funding negotiations, which may influence its share price. Investors have been advised to seek professional advice during this period of uncertainty.
Government securities experienced mixed yield movements. The 273-day T-bill yield declined by 0.50% to 13.00%, while bond yields rose: the 5-year bond increased by 1.45% to 18.00% and the 15-year bond rose by 0.20% to 20.20%. Meanwhile, year-on-year inflation eased slightly by 1.20% to 14.10% as of June 2025, offering a modest reprieve in consumer price pressures.
Equity analyst recommendations show ZAMEFA, ZCCM-IH, and ZAFFICO in buy territory, with ZAMEFA boasting a low P/E ratio of 2.11 and ROA of 13.31%. On the contrary, Natbrew, still in recovery mode, is marked as a sell, given its negative earnings and eroded capital.
Market participants are encouraged to consider diversified exposure and monitor macroeconomic trends. The investment climate remains cautiously optimistic with select sectors, particularly energy and mining, offering value opportunities.
