• Lusaka Stock Exchange records 1.3% increase in market Capitalisation over the past 7 days
  • Johannesburg Stock Exchange has seen 1.1% uptick  in market Capitalisation over the past 7 days
  • All three stock markets are perfoming exceptionally well in their financial sectors

Zambia (Lusaka Stock Exchange)

HARARE- Over the past 7 days, the market has seen a 1.3% increase, driven by an impressive 5.8% gain in the financial sector, largely contributed by Standard Chartered Bank of Zambia and Zambian National Commercial Bank.

The industrials sector also recorded an appreciation of 0.21% over the 7-day period, with Metal Fabricators of Zambia Plc leading the way by 2.1%. This appreciation can be attributed to various developments that took place within the sector during this period. These factors all contributed to the sector's overall appreciation, making Metal Fabricators of Zambia Plc a key player in the market.

Metal Fabricators of Zambia Plc (ZAMEFA) is one of industrial players that manufactures and sells copper rods and copper and aluminium electrical conductors in Zambia and internationally, offering a wide range of products including low voltage cables (600/1000 volts), building wires, bare copper earth wires, flexible cables and wires, aluminium overhead conductors, aerial bundle conductors, medium voltage power cables, copper shapes, as well as general insulated wires and telecommunications cables.

The company's share price appreciation is likely to be due to the country's copper industry receiving accreditation from foreign investors, including Sibanye-Stillwater CEO Neal Froneman, who noted that the industry could provide a much-needed opportunity for investment.

"Zambia is looking very good. President Hichilema is a professional; he’s doing exactly the right things. His focus is strongly focused on commercial realities, and is just a breath of fresh air," Neal Froneman told Business Maverick in an interview.

The recent retirement of one of Metal Fabricators of Zambia Plc's (ZAMEFA) independent directors has left the company with an unbalanced director ratio of executives, resulting in notable effects on the market.

South Africa (Johannesburg Stock Exchange)

The market has seen a significant 1.1% increase over the past week, with the Financials sector leading the charge, up an impressive 1.7%. The other main drivers of this 7-day performance uptick have been the Healthcare and Industrials sectors, with increases of 7.95% and 7.62%, respectively.

The South African Reserve Bank (SARB) has taken a bold step in driving the nation's transition towards a cashless society. Recently, it launched PayShap, an instant payment system that enables customers to make transactions without requiring a bank account number. This new service is expected to make it simpler and more secure for customers to conveniently transact with each other and is likely to be widely embraced by the financial sector.

The value hike in the healthcare sector is a result of the recently published HY2023 financial results of Aspen Pharmacare Holdings. Their forecasted revenue growth of 5.2% p.a. on average during the next 3 years is significantly higher than the 5.2% growth forecast for the pharmaceutical industry in Africa.

The value of the healthcare sector is set to increase following the release of the HY2023 financial results by Aspen Pharmacare Holdings. According to the company's financials, revenue is expected to grow at an average rate of 5.2% per annum over the next three years, surpassing the 5.2% growth forecast for the pharmaceutical industry in Africa.

Over the last 3 years, on average, earnings per share (EPS) have increased by a robust 34% annually; however, the company's share price has only risen by a comparatively modest 17% per year. This suggests that the stock price is significantly underperforming EPS growth.

 Mozambique Bond Market

The Mozambique bond market is considered one of the most stable and liquid markets in Africa. The bonds are traded on the Mozambique Stock Exchange (BVM) and are considered high-yield investments.

A London judge ordered Mozambique on Friday, March 3rd, to allow access to documents held in state offices or risk derailing a blockbuster London lawsuit against Credit Suisse, shipbuilder Privinvest, and others over the $2 billion "tuna bond" case.

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