Lusaka Stock exchange update a Zanaco special

Thursday 12th April, 2012

DAILY COMMENTARY FOR WEDNESDAY 11th APRIL,2012

The index closed at 3,925.44 points ,down by 0.13% from yesterday's close of 3,930.54. A total of 892,753 shares were transacted in 33 trades worth K596 million. Price movements were recorded in ZAMEFA - (K93.00), ZAMBREW -K10.00 and FQMZ -(K8.00). Trading activity was recorded in CEC, NATBREW, CZ, ZANACO and ZANACO . The dual listed companies as at 15:00hrs (Zambian time) today traded at : FQMZ - 19.40 C$, SHOPRITE - 13,519 SACents, ZAMBEEF - 41.25 Pence, ZCCM-IH - 2.06 Euros.

I remember weeks back when the commission led an inquiry into the sale of zanaco I said if the Inquiry was unfruitful the share price of zanaco would bounce back to original levels as investors would have their confidence in the bank restored and fears of nationalisation could be averted.

My instinct still tells me that Zanaco shares are still grossly undervalued and at a price of K1200 which was K1080 during the inquiry and K1300 before the inquiry began is still to low.