By BUUMBA CHIMBULU
Total savings for the Zambian capital markets have increased by 8.05% to over K74.8 billion last year supported by positive macro-economic and financial market fundamentals.
This is an increase from about K69.2 billion recorded in 2021, according to Securities and Exchange Commission (SEC) Chief Executive Officer Philip Chitalu.
Mr Chilufya has observed that the positive performance of the capital markets were recorded despite the challenging times in the global economy.
He said a growing economy was good for the capital markets as it implied an increase in resources that could be invested in the capital markets.
“Total capitalisation including Shoprite increased by 8.12% to K72.641 billion as of December 30, 2022 relative to the same period in 2021, indicating the market capitalisation as a percentage of the gross domestic product at 17.18 percent.”
“This was mainly due to share price increases in the listed companies including Zambia Sugar, Zanaco, Copperbelt Energy Corporation, Zambeef, Chilanga Cement and African Explosives,” he said at a press briefing in Lusaka on Tuesday.
Mr Chitalu also said collective investment schemes assets under management grew by 18.3% from K1.429 billion to K1.690 billion last year.
He said as at December, 2022 the number of investors was at 271,651 an increase of 91.93% from 141,538.
He stated that the Lusaka Securities Exchange (LuSE) all share index (LASI) was also up by 22 percent last year relative to the same period I. 2021.
Mr Chitalu said over the first six month of 2022, the significant month-on-month increase was from January to February where it went up by 7.65%.
He attributed this to increase in stock prices for Copperbelt Energy Corporation (CEC) at 30 percent, Chilanga Cement at 16 percent, Standard Chartered Bank at 13 percent, Puma Energy at nine percent, Real Estate Investments Zambia at four percent and Zanaco at four percent.
He said as at end of the second quarter, LASI was at 6,854 points and increased steadily to 7,342 point at end of the third quarter.
“As of December 30, 2022, LASI closed at 7,337.79 points representing a -0.06 drop from the third quarter figures,” Mr Chitalu said.
On the outlook, Mr Chitalu expressed optimism for a positive year going forward.
He the commission would this year focus on various strategic such as implementation of the Capital Markets Master Plan which is expected to be launched on February 23,23.
Others are establishment of green finance unit to champion the commission’s commitment to position Zambia as a green investment hub and automation and digitisation of supervisory and regulatory process, starting with collective investment schemes.
“With your (media) cooperation we can bring more awareness to the capital market ,through programmes such as our town hall meetings, school campaigns and the collective investment schemes radio programmes that you will see rolled out during the course of the year and hopefully encourage participation from the public,” Mr Chitalu said.
