Lusaka Securities Exchange remains positive despite April market dip

Lusaka Securities Exchange recorded mixed market performance in April, with trading activity slowing despite positive year-to-date gains on the local bourse.

The Lusaka All Share Index (LASI) declined by 2.1 percent during the month to close at 26,716.95 points from 27,289.81 points recorded in March.

However, the market remained in positive territory on a year-to-date basis, posting gains of 3.08 percent in local currency terms and 20.83 percent in United States dollar terms.

In the April market performance update issued on Monday, LuSE Chief Executive Officer, Nicholas Kabaso, said the exchange continued to perform competitively among global frontier markets despite persistent stock-specific volatility and lower market turnover.

Kabaso said positive developments during the month included continued growth in retail investor participation through the LuSE Mobile App and the registration of Chuuma Asset Management Limited as a new trading and sponsoring broker.

The addition brings the total number of registered brokers on the exchange to 10.

“Conversely, secondary bond market activity contracted significantly,” Kabaso said.

Among the top-performing equities during the month were Bata Zambia, which closed at K8.50 from K8.39, Zambeef Products, which rose to K6.35 from K5, and Puma Energy Zambia, which increased to K2.98 from K2.50.

Meanwhile, major decliners included Lafarge Zambia, which fell to K69.57 from K76.60, ZCCM Investments Holdings, which dropped to K165 from K170, and British American Tobacco Zambia, which declined to K12.81 from K12.99.

Other counters including AECI, CECZ, DCZM, SCBL, ZMBF, ZMFA and ZNCO also posted declines of below three percent.

Total equity turnover dropped sharply to K34.1 million in April from K64.3 million in March, representing a 47 percent month-on-month decline.

Kabaso attributed the slowdown to subdued trading activity as investors continued assessing recently published corporate financial results amid ongoing market volatility.

He added that investor caution remained elevated during the period under review.

Despite the slowdown, retail participation continued to improve, with registered users on the LuSE Mobile App increasing by 10.5 percent to 38,669 in April from 35,000 in March.

Kabaso said the increase reflected the exchange’s efforts to promote financial inclusion through mobile-based trading access, simplified account management and enhanced investor education.

On the fixed-income market, secondary bond market turnover declined to K4.6 billion in April from K6.5 billion in March.

According to Kabaso, the decline may reflect shifting investor allocations, lower liquidity levels or market consolidation following stronger activity in previous months.

Looking ahead, he said the exchange remained cautiously optimistic about growth prospects despite softer market momentum in April.

Kabaso said Zambia’s successful debt restructuring programme and the achievement of single-digit inflation were expected to support lower interest rates and create a more favourable environment for equity market activity.

He added that LuSE remained focused on advancing new listings and corporate actions aimed at improving market depth and liquidity.

Kabaso also warned that geopolitical tensions involving Iran could present downside risks to global markets, although any impact on Zambia’s domestic market was expected to be gradual.

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