LuSE market capitalization increases by 14%

Market capitalization for the Lusaka Stock Exchange (LuSE) at end of the 2014 increased by 14 percent from K58, 187 recorded in 2013 to K66, 456.

The market turnover on an annual basis also increased by 421.34 percent from K 211,291,942 as at 31st December 2013 to K1,101,542,932 as at 31st December, 2014.

Securities and Exchange Commission (SEC) Acting Secretary and Chief Executive Officer Phillip Chitalu says this increase in the market turnover is attributed to the Lafarge Plc restructuring to meet the LuSE free float requirement.

Mr. Chitalu has told a media briefing in Lusaka this morning that the ZCCM-IH Balance Sheet Restructuring also contributed to the increase in the Market turnover after a debt Settlement Agreement between the Zambian government and ZCCM-IH signed in March 2014, where ZCCM-IH’s indebtedness of K1, 829,298,173.06 to government was converted into equity.

Mr. Chitalu notes that there was a further increase in the number of listed companies from 22 in 2013 to 23 in 2014 with Madison Financial Services joining the listed tier.

He says Professional Insurance joined the quoted tier in 2014 bringing the total number of quoted companies to 9 companies namely Barclays Bank Plc, Cetzam, Chibuluma Mines, Chambeshi, Kansanshi, Konkola Copper Mines, Mopani Mines, Professional Insurance and Finance Bank Plc.

And Chitalu says in view of the activities that have taken place on the country’s market in 2014, SEC envisages a more organized market in 2015.

He says to this effect the Commission is in the process of developing Rules and Regulations that will help govern the way market players behave.