[2007-08-07]  LuSE is best performing stock market in Africa
THE Lusaka Stock Exchange is the best performing stock market in Africa during the first half of 2007.

The Lusaka Stock Exchange (LuSE) all share index gained 61 per cent in first half of this year in Kwacha terms, which translates to 97 per cent in dollar terms.

The index is the measure of performance of stocks on the market and reflects by how much shares are growing on average.

According to Africa’s Stock Markets half-year review called the Databank, the country’s good performance was due to local interest for equities and the strengthening of the Kwacha, which has been buoyed by strong copper prices and exports coupled with private capital flows.

The review attributes the good performance to high copper prices that have been very bullish this year, adding that this was expected to help the economy register its first ever current account surplus.

The review added that the strong growth in the economy over the last five years was expected to remain intact in the medium term, which could encourage companies to increase capital investments.

“We are expecting healthy earnings growth for listed companies driven by robust Gross Domestic Product growth which should improve the fundamentals of the equity market, the databank read in part.

However, the review indicated that it expected more volatility in the second half due to profit tasking spells.

The databank further cited the high cost of energy in the country as the most important factor that will squeeze efficiency gains.

Databank is a leading information management and security company, offering customized business and regulatory compliance information designed to help organizations manage risk and mitigate the impact of disasters and other unforeseen business disruptions.

Country offices are based in Ghana, Gambia and Liberia.



Copyright(c)2007
Source: Copyright(c)2007 Daily mail ltd