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The Lusaka Securities Exchange (LuSE) recorded a dramatic increase in market turnover in May, with total trades soaring to K571 million from K34 million in April, largely driven by a major transaction involving Real Estate Investments Zambia (REIZ).
The sharp rise represents a 346 percent increase in trading activity and marks one of the strongest monthly performances on the local bourse in recent years.
However, LuSE Chief Executive Officer Nicholas Kabaso, cautioned that the surge was largely attributable to a single exceptional transaction and did not necessarily reflect a broad-based improvement in market liquidity.
According to the LuSE May Market Performance Update, the exchange continued to experience a net sell position during the month, with limited buying interest across most listed counters.
Despite the jump in turnover, the Lusaka All-Share Index (LASI) fell by 4.2 percent month-on-month to close at 25,596.87 points in May from 26,716.95 points in April.
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The decline pushed year-to-date returns into negative territory at minus 1.25 percent in local currency terms.
“The elevated turnover reflects continued portfolio rebalancing amid prevailing market volatility and evolving macroeconomic conditions. Despite the increased trading activity, the market remained characterised by a net sell position, with limited buying interest across most counters,” Kabaso said.
He noted that while local currency returns weakened, the market remained attractive in United States dollar terms, posting a return of 18.65 percent due to the appreciation of the Kwacha.
Meanwhile, LuSE recorded encouraging growth in retail investor participation, driven by increased uptake of its digital trading platform.
The number of registered users on the LuSE Mobile App rose by 19.4 percent, increasing from 38,669 in April to 46,166 in May.
Kabaso attributed the growth to the exchange’s retail investor engagement strategy, which focuses on improving access to market information and simplifying account opening, portfolio management and trade execution through digital channels.
He said the continued expansion of digital access was expected to broaden the investor base, improve market depth and enhance liquidity over time.
In the fixed-income market, activity eased slightly during the month, with secondary bond market turnover declining by 1.5 percent to K4.5 billion from K4.6 billion recorded in April.
Kabaso said the contraction reflected changing asset allocations, shifting yield expectations and institutional portfolio rebalancing, with some investment flows moving into selected equities.
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