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Total savings for Zambia’s capital markets for the second quarter of this year increased by 13.35 percent, closing at K118.5 billion as of June 30, 2024.
The increase came at the back of the weakening currency, coupled with inflationary pressures during the first half of 2024.
Securities and Exchange Commission (SEC) Chief Executive Officer, Phillip Chitalu, said the Zambian economy faced inflationary pressures in the second quarter of 2024, affecting capital market performance.
He, however, mentioned that the market showed resilience with gains in several counters such as an increase in total savings despite challenges like rising fuel costs and El Niño drought impacts.
Chitalu said this on Tuesday at a press briefing when giving an update on the performance of the capital markets for the second quarter of 2024.
“The equity market saw mixed performance in the second quarter of 2024, with notable price changes in companies like Shoprite and ZCCM-IH, and a significant increase in total savings and market capitalisation.
“Total savings in the capital markets increased by 13.35 percent during the second quarter of 2024, closing at K118.5 billion as of June 30, 2024,” Chitalu said.
In the second quarter of 2024, he said, some of the key highlights in the capital markets included fluctuations in stock prices of listed companies such as Shoprite, ZCCM, Chilanga Cement, Taj Pamodzi Hotels, and Copperbelt Energy Corporation.
Entities that showed slight price reductions included ZANACO and Zambeef.
“Furthermore, in the second quarter of 2024, Taj Pamodzi PLC was acquired by ASB Hospitality which triggered a mandatory offer. A mandatory offer simply refers to a situation that arises when someone or an entity acquires a minimum of 35 percent of shares in a company registered under the Securities Act.
“The Act obligates the person that reaches 35 percent or more shares to make an offer to purchase the remaining shares from the other shareholders. This way, everyone has a chance to sell their shares at the same price,” Chitalu explained.
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