Zambia bourse grows, eyes new listings
Zambia's stock market saw a 44 percent jump in market capitalisation in 2007 and expects three new listings and a series of municipal housing bond issues this year, a senior market official told Reuters on Wednesday.
The Lusaka Stock Exchange (LuSE), one of the fastest growing bourses in Africa, also said it would also introduce an alternative investment market (AIM) in 2008 as a means for local businesses to list on the market.
LuSE business development manager Brian Tembo said in an interview that power distributor Copperbelt Energy Company (CEC), the Zambia National Commercial Bank (ZNCB), and Celtel Zambia Plc, the nation's leading mobile phone provider, look set to be listed in 2008.
Tembo said two firms were listed in 2007 to bring the total to 16 listed companies. The stock market's capitalisation has grown to $4.82 billion, largely as a result of equity gains recorded by most stocks.
He added that 12 firms quoted on the bourse would qualify for a full listing once they met all listing requirements, while two others had expressed an interest in joining.
"The market was bullish last year. In terms of listings this year, obviously we are expecting on the 21st January a CEC (listing) and then Zanaco sometime in the year and Celtel (Zambia Plc) have said they want to list this year," Tembo said.
The LuSE All Share Index (LASI) rose 92.3 percent in 2007 to 3,533.5 points compared to 2006.
Tembo said the LuSE would introduce an alternative investment market for small and medium scale enterprises (SMEs) with a minimum capital base of approximately $5 million to help local firms raise capital for expansions and upgrades.
"We want to make LuSE more relevant to investors and help the local companies to grow and maintain good corporate governance," he said.
The exchange would also be switching from a manual to an automated trading system and also create a central securities depository system to help the bourse effectively handle expected increases in trade, he added.
The LuSE expects five municipal councils and Standard Chartered Bank (Zambia) to issue bonds.
