[2008-05-14]  Luse Grieves Over Speculation
THE Lusaka Stock Exchange (LuSE) has bemoaned growing speculation on the capital market lately, which has resulted in 16 per cent share index fall for the month of April.

LuSE board chairman, Friday Ndhlovu said the reduction in all share price index in the past six weeks had been as a result of investors exiting to other opportunities.


Speaking at a Press briefing in Lusaka yesterday, Mr Ndhlovu said the overall reduction in the all-share index in March was 4,649 compared to 3,902 for April, resulting in a 16 per cent share fall.

He said the market would re-align the Index once the corporate action had stabilised.

"The new listings coming onto LuSE should enhance liquidity and provide investors with additional options, adding that the automated platform would also play a pivotal role in the capital market re-aligning itself," Mr Ndhlovu said.

He further said that LuSE recognised the fact that there were different investor profiles which were driven by varying appetites towards risk, long versus short term outlooks and speculative, among others, but discouraged investors from trading on hearsay but to review their investment positions and transaction strategies.

The stock exchange has also invested US$1 million to acquire an automated system of its trading platform which would increase speed and cope with the increase in investor trading arising out of new listings.

Currently, trading on the capital market is manual.

And LuSE general manager, Beatrice Nkanza said LuSE through the Securities and Exchange Commission (SEC) has approved the rules and fee structure for small and medium enterprise (SMEs).

Ms Nkanza said this was a platform meant for SMEs to list in the stock exchange, which would encourage smaller companies to raise capital on the stock market.

She said before the smaller companies could list, LuSE would have to carry out a sensitsation programme to enlighten prospective users.

Once the SME platform was operationalised, it would increase trade and give a chance to smaller companies to grow.



Source: Copyright © 2008 The Times of Zambia.