Lusaka Stock Exchange
Lusaka Stock Exchange, Acronym Luse, is the only stock exchange in Zambia and was launched by the International Finance Corporation (IFC ) of the World Bank. She opened for the first time in February 1994. IFC organized trade in accordance with the recommendations of the G -30, the organization of Luse worked out and regulated their action sequences. The foundations of the market in Lusaka was a decisive step towards economic reform in Zambia to encourage private investment and strengthen the private sector.
Background
The trade based on a computer system that lists each trade and carry out after three days. The Luse features electronically managed portfolios, which are managed by the Central Share Depository (CSD ) Luse 's own. It is designed for international data exchange through. Barclays Bank of Zambia and Stanbic Bank, Zambia, deer are members of CSD. Barclays Bank of Zambia is a subsidiary of Barclays Bank in London, which provides access to trading on the Luse, through its Barclays Global Securities in London international investors. Similarly, the Stanbic Bank, which is a subsidiary of South Africa's Standard Bank and also offers an international access to trading on the Luse works.
Since its opening is traded on the Luse shares. Since March 1998, Zambian government bonds are quoted and Luse to the official market. Investors are now encouraged to handle their orders exclusively through the Luse. There are a number of companies that act as brokers on Luse. In October 1999, Pangaea / EMI Securities, the largest share of the trading volume since the opening of Luse had.
The market is regulated by the Investment Act ( Securities Act No. 38) of 1993, compliance by the SEC ( Securities and Exchange Commission (SEC) ) is controlled. Until the end of 1999, five companies were awarded to the Luse on the stock market, all five were in the context of Zambia's privatization program in which shares only the Zambian trade were offered. An exception is Zambia Sugar Plc in autumn, 1996, the shares were offered to international investors to purchase, as these shares previously held by the Zambian Privatisation Trust Fund ( ZPTF ) and Commonwealth Development Corporation ( CDC) were. Two international emerging market funds participated in the offer and bought all 165 million shares, foreign investors were offered. In August 1999, the first new issue took place when the Zambian Breweries Plc brewery could sell 8.5 million shares for U.S. dollars to repay a loan that was used to acquire the Northern Breweries Plc. This action proved to be a resounding success.
Although only privatized companies were listed on the Luse, more and more private companies are seeing but in it a chance to come to the capital. Many of these companies, especially in the mining sector are facing expansion investments that they want to finance through the capital markets. Trade and volume increase. In the year 2006 there were 2,858 transactions occur (2005: 2,228 ), an increase of 28 percent, but the trading volume increased by 120 percent. The Luse itself works so far ( 2006) at a profit.