Lusaka Stock Exchange

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Lusaka Stock Exchange , acronym LuSE , is the only exchange in Zambia and was launched by the World Bank's International Finance Corporation (IFC) . It opened for the first time in February 1994. The IFC organized trade according to the recommendations of the G-30, worked out the organization of the LuSE and regulated its course of action. The establishment of the stock exchange in Lusaka was a crucial step in economic reforms in Zambia to encourage private investment and strengthen the private sector.

backgrounds

Trading is based on a computer system that lists every trade and executes it after three days. LuSE has electronically managed deposits that are managed by LuSE's own Central Share Depository (CSD). It is designed for international data exchange. Barclays Bank of Zambia and Stanbic Bank, Zambia, are members of the CSD. Barclays Bank of Zambia is a subsidiary of Barclays Bank in London, which offers international investors access to trading on LuSE through its service Barclays Global Securities in London. The Stanbic Bank, which is a subsidiary of the South African Standard Bank and also offers international access to trading at LuSE, works in a similar way .

Since it opened, shares have been traded on the LuSE. Zambian government bonds have also been listed since March 1998 and LuSE has been their official market. Investors are now required to process their orders exclusively through LuSE. There are a number of companies that act as brokers on LuSE. In October 1999, Pangea / EMI Securities had the largest share of trading volume since LuSE opened.

The market is regulated by the Securities Act No. 38 of 1993, compliance with which is monitored by the Securities and Exchange Commission (SEC). By the end of 1999, five companies went public on LuSE, all five of which were in the context of Zambia's privatization program, in which shares were offered exclusively to Zambian trading. An exception is Zambia Sugar Plc in autumn 1996, whose shares were also offered for purchase to international investors, as these shares were previously owned by Zambian Privatization Trust Fund (ZPTF) and Commonwealth Development Corporation (CDC). Two international emerging markets funds participated in the offer, buying all 165 million shares offered to overseas investors. The first new issue took place in August 1999, when the brewery Zambian Breweries Plc sold shares for 8.5 million US dollars to repay a loan that was used to acquire Northern Breweries Plc . This action turned out to be a complete success.

Although so far only privatized companies have been listed on the LuSE, more and more private companies see it as an opportunity to raise capital. Many of these companies, especially in the mining sector, are facing expansion investments that they want to finance through the capital market. Trade and volume increase. In 2006, 2,858 transactions took place (2005: 2,228), an increase of 28 percent, but the trading volume increased by 120 percent. The LuSE itself has so far (2006) been profitable.

Listed companies

  1. African Explosives Zambia PLC
  2. British American Tobacco (Zambia)
  3. Chilanga Cement PLC
  4. National Breweries PLC
  5. Metal Fabricators of Zambia PLC
  6. Zambian Breweries PLC
  7. Zambia Sugar PLC
  8. Zambeef Products PLC
  9. Farmers House PLC
  10. Pamodzi Hotels PLC
  11. Standard Chartered Bank (Zambia) PLC
  12. Shoprite Holdings Limited - PLC
  13. BP Zambia PLC
  14. Zambia Consolidated Copper Mines Investment Holdings PLC
  15. Cavmont Capital Holdings Zambia PLC

Quoted companies

  1. Barclays Bank Zambia PLC
  2. Investrust Bank PLC
  3. Zambia National Commercial Bank PLC
  4. Chambeshi Metals PLC
  5. Chibuluma Mines PLC
  6. Cyprus Amax Zambia PLC
  7. Konkola Copper Mines PLC
  8. Mopani Copper Mines PLC
  9. Copperbelt Energy Corporation PLC
  10. Zambia Bata Shoe Company PLC
  11. Arcades Development PLC

Web links

See also