The Lusaka Stock Exchange has announced that two companies are expected to list shares on the local stock market in the last quarter of 2013.
LUSE Chief Executive Officer Brian Tembo told a media briefing in Lusaka Tuesday morning that one of the companies is from the property sector and another from the insurance industry.
And Mr. Tembo has disclosed that trading of shares on LUSE reduced by 96 percent during the previous quarter compared to the corresponding quarter in 2012.
He said market capitalization was up by 22.88 percent at K56.11 billion compared to the same period in 2012 which was K 46 billion.
Mr Tembo said the LuSE All Share Index (LASI) was up by 29 percent closing the quarter at 4,796.89 points compared to 3,709.09 points in the corresponding quarter in 2012.
“In terms of equity, we are expecting two listing, one from the property market and the other from the insurance market. We are happy that government has given incentives to companies in the property sector that list on the exchange,” Mr Tembo said.
At the same briefing, Securities and Exchange Commission Secretary and Chief Executive Officer Wala Chabala has expressed concern over the proceeds of the K2.5 Billion bond that was issued by the International Finance Corporation earlier in the year.
Dr. Chabala said the proceeds of the bond have not been invested in businesses as is the mission and objective of the IFC.
“Some concerns have been raised in some quarters, the proceeds have not been invested in the businesses as you may know, the IFC invests in SME businesses in countries where it operates as a way of stimulating private sector, now in this case, the proceeds of the bond issuance has gone into a different business and not the SME sector,” Dr Chabala said.
He added, “There are obviously a number of dynamics at work in that some investors would be happy to invest in securities issued by a triple A rated institution but other investors are keen that the proceeds of the issuance be applied as per objectives and mission of IFC.”
Dr Chabala added that the other dimension is that there was more overwhelming appetite for the IFC security from external investors and that IFC had to play a balancing act to be able to include local investors.
Great news. It has been a while since we had an IPO. Could this explain why Mr. Chikwanda proposed tax exemptions to a category of income accruing to property companies listed on the LuSE?
“And Mr. Tembo has disclosed that trading of shares on LUSE reduced by 96 percent during the previous quarter compared to the corresponding quarter in 2012”, really??? are you serious!!! Luse needs to go on road show/confindence building exercise to attract more business to the exchange
listing then trading reposition and exciting Lusaka stock exchange companies and trades.Its not simply listing having a clear regulatory flamework on trading and settlement
The website also should be interactive amongst trades and support trading if luse liquidity and efficiency will continue to grow and depend.Then the traditional brokerage system we are running must change with others and create excitement amongst analyst like we see on world reknown stock exchanges.
show to many
1.How to invest
2.How to list especially to Zambian owned
3.Then the products or assets listed and markets
4.It must be interactive amongst on regulation and investor relations and analytics
5.Demo login how to…
Then simply listing is not enough Luse as a trade marker or market taker must exercise its responsibility to cultivate an interest in the listed That is why the current trading arrangements at luse needs to change and the wider arrangement of Luse at the centre then the sell side and buy side with support financial firms supporting the efforts of luse.The asset capitalization as percent of GDP-Zambian does not reflect well on the Financial sector among Fixed income equity alternative and other such as currencies we need to spur the excitement and improve the efficiency in trades and participation its not impressive spending a little on restructuring the trade platform and be a Little interactive
will be helpful but then that goes will support services like the like the rating agencies but on the local sense.i have seen that initiative at mukuba pension house,doing their own independent researches analytics comfirming and down grading listings as it well not the remote fitch and mood who are nationally approved rating agencies in Us then confidence to risk and invest will rise in line with the development of local investment banking and other related financial services with little reliance on across to explain and advise on how
Totally incomprehensible rambling from this so called financial analyst. If I who works in the securities industry cannot understand what you are trying to say what more the ordinary blogger. Make it simple my friend.
To be simple make the luse as a market place interactive.Move away from the brokerage type and allow the wheel to move from the issuer to traders and luse settling traders and then the investment bankers and rating firms and financial service firms playing there part.
Advertising your market a little and promoting efficiencies in trades by attracting analystics and commentaries in a more interactive manner See the world stock exchanges web site and see how others are doing it.
I donot want to take the space of Lusakatimes but simply show you a hint otherwise I can comment on the luse website and you will see sense establish an investment flame work well aligned to support services
I think of late you have been watching top trader on ZNBC learn something. I can confirm to have had a privilege even now of being trained by Experienced analysts and Investments bankers including renowned financial services firms in Financial Statements analysis reports and security analysis.South Aficans and americans letter are well aligned and on top of things visit JSE and learn
I have a duty to make a comment to my observation and hope in my sincere professional manner others can pick it up and see.
Analysing a stock exchange as others have analysed our luse speaks volumes on our companies and financial services we have around giving a chance to others outside to exploit
Jonathanmhango go away.
Thanks
until you make it online and interactive the Taxes that the minister is saying in transactions and commissions will not be maximized as most trades are not open and seen as per efficiency market a character of liquid markets and structure
Then you have sectors Financial,energy,mining,realts,manufacturing,retail and gov with there own unique identifiable quotation system making it easier for people to pick trades and to analyze capitalization in those sectors .Invest in an interactive trading system with all partners fully plugged.I simply will need to download on excel the trades in sectors and calculate the returns,variances,the f test and other including capitalization and chose to invest where
A little restructure from pure brokerage type ,a dark pool to a trading interactive luse full of life and excitement then liquidity and capitalization will be just like that like that advert in stanch art,linking issuers financial and investments Bankers
Luse is small by african standards with only $10b capitalization compared to $34b at Accra,$22b at Nairobi,$50b in Lagos and almost $900b at Jo’burg.
Luse is also small by # of listings and extremely small trading volumes.Wake up zambia and build your economy.
unless you see and lookout,then its like whatever is said is critical.An experienced view on markets and investing and the composites at Luse gives room for much work and that work is an effort for all.Its about building the financial system of the country from mere bookkeeping and economics to Financial statements analysis and research then Banking and Finance together with our support activities.If you simply study the global investments performance standards handbook on security analysis and reporting,then you will appreciate what is lacking on luse as you also restructure the time of trades,the trading floor and brokerage inclined trading to support active trading of various portifolios to be build
Trust a Zambian to invest in “extra maritals”….lol. Full of akaso and ignorance (just saying)
Invest also in report service firm to help you manage reporting and financial statements including the cautionary and other trading report so that you can concentrate on policy and regulations of players.That will help you free your time from many things to watch the luse and leave it to firms,investment bankers,brokers and traders to trade as you regulate.
This reporting service can be housed independently or on your website
I’d say grow the LUSE as Stock markets
1 help companies directly raise funding to grow versus borrowing from commercial banks. managers r forced to increase profits in relation to commercial interest rates
2 democratise wealth – ANY one can participate in the “success” (relative) of companies and grow her investment through a share of the profits and growth in company value.
3 promote good corporate governance coz financials r openly available, management can be closely watched
4 diversify investment risk coz most pensions in Zambia were put in very risky government bonds
5 attract much needed but riskier forex inflows
6 attract foreign direct investment due to improved corporate governance. investors can trust their investments will be safe in Zambian hands
You have the regulator and associations
You have luse
Then the companies and firms trading
You have traders, brokers and agents as it where either on the floor or in firms Interactively positioning and repossioning
Then you have commentators and analysts creating excitement and interest following though at the bank office as it where together with reporting service firms and other such as rating agencies either on the buy side or sell side paid or not.
Then you have clearing houses or settlement/investment banks and firms.
So where are we do . we have all these people in place.If so lets look closely at the luse site and structure the trading floor to attract listing
then teach people analysis and calculating skills from letter A of Texas financial instrument to Z on Financials, returns and variances, indexes and eps P/E together with economic indicators and move on to formulation of models on the same on excel to give value and confidence to issuers.
This is few point I hope my friend in the industry there can add .Thanks to LT
then teach people analysis and calculating skills from letter A of Texas financial instrument to Z on Financials, returns and variances, indexes and eps P/E together with economic indicators and move on to formulation of models on the same on excel to give value and confidence to issuers and traders
This is few point I hope my friend in the industry there can add .Thanks to LT