The Lusaka Stock Exchange is up 9.71% year-to-date as of April 3 2014 (up 38.4% year-over-year). The index has been on a very strong run since late January 2013 as shown below:
The top 5 gainers year-to-date are:
ZCCM Investment holdings leads the pack, up 58.5%. The recently announced the conversion of K1.83bn of debt owed to the government into equity. The company is majority owned by the government and has a lot of upside potential but still has some issues to resolve as highlighted in this letter from minority shareholders from April 2013. It has a stake in a number of companies, most of which are in the mining sector.
The bottom 5 decliners year-to-date are:
Airtel Networks leads category, losing 14.9% year-to-date. The company is one of 3 telecom companies is Zambia. It was the market leader by subscribers at the end of 2012 with MTN Zambia close behind. The 2013 figures have not been released by ZICTA to date but they'll make for an interesting read.
Most African stock exchanges did very well in 2013 (Zambia included) from foreign and domestic investment. Frontier market stocks are fast-becoming a normal part of the typical global fund managers asset allocation as the luster of emerging markets has started to wear-off. The Lusaka Stock exchange has a lot of room to run and should see liquidity and investment improve over the next few years. Can it break the 6,000 level this year?
Trying to decipher this puzzle that is Zambia by using a variety of publicly available data (structured and unstructured) in conjunction with my own skill/experience. * * *