The Zambian capital market continued to show resilience during the last quarter of 2023, with capitalisation on the Lusaka Securities Exchange (LuSE) all share index hitting K88.7 billion.
The sector resilience was evidenced by increase in key market indicators such as market capitalisation and the LuSE all share index, says Securities and Exchange Commission (SEC) acting Chief Executive Officer, Diana Sichone.
Sichone at the quarterly media briefing on Monday stated that as a percentage of the country’s Gross Domestic Product (GDP), LuSE market capitalisation closed 20 percent.
She indicated that this was on course to reach the Capital Market Master Plan (CMMP) target of 27 percent by end this year.
“Growth in the market capitalisation was mainly driven by share price increases in the listed companies notably Copperbelt Energy Corporation (CEC) plc, Zambia Sugar plc, Real Estate Investments Zambia plc, Standard Chartered Bank plc and ZANACO Plc.
“The global economy faced challenges in the fourth quarter of 2023, impacting global capital markets. Despite this, Zambia’s capital markets showed resilience, supported by positive economic fundamentals,” Sichone said.
On the LuSE all share index, she stated that it went up by 16.27 percent closing at 10,828.18 points.
The LuSE all share index is a benchmark index that represents the performance of all listed equities on LuSE.
Sichone explained that the index moved due to share prices increases in listed companies as investors reacted to the good financial performance of companies such as CEC Plc, ZANACO and Zambia Sugar plc.
“Compared to key indices such as inflation, exchange rates, consumer price index among others, the LuSE all share index outperforms those indices over a long-term horizon suggesting that in the long term, equities have outperformed most investment vehicles in Zambia,” Shichone said.
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