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Zambia’s capital market has demonstrated capacity for growth, supported by a relatively stable exchange rate a factor that is beneficial to the industry.
This has led to the total savings in the capital market to increase by 45.09 percent during the third quarter of 2024, closing at K171.9 billion as of September 30, 2024.
Equally, market capitalisation which represented the total value of all listed shares, also saw an increase of 46.8 percent to reach K166.5 billion as of September 30, 2024.
This is according to the Securities Exchange Commission (SEC) Chief Executive Officer, Phillip Chitalu when giving an update on the performance of the capital markets for the third quarter of 2024 in Lusaka at their offices.
“This substantial rise in market capitalisation has largely been driven by notable share price increases among key listed companies, including Shoprite Holdings, ZCCM-IH, Puma Energy Zambia, Chilanga Cement, and Copperbelt Energy Corporation Zambia (CECZ).
Read more: Zambia, Botswana, others make progress in African capital markets development
“In terms of the market capitalisation to the country’s Gross Domestic Product (GDP), this was at 24 percent, which is slightly below the Capital Markets Master Plan (CMMP) end year target for 2024 of 27 percent,” he said.
Chitalu stated that it was expected that the market cap to GDP would hit the target of 27 percent for 2024 provided the performance of the capital market continued at this positive trajectory.
This was in comparison to the second quarter performance of the market cap to GDP ratio witnessed a 46.8 percent increase.
He also pointed out that the past quarter had seen both resilience and obstacles, saying “the delisting of Taj Pamodzi Hotel has led to a reduction in the already limited number of counters of equity listings. A narrow investor base and persistent public awareness gaps also remain key concerns.”
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