MillenniumIT of Sri Lanka has installed computers and software at the Lusaka Stock Exchange (LuSE) to facilitate electronic trading.

Tuesday’s launch of the electronic trading system signifies that the LuSE has now joined the league of automated stock exchanges in the Southern Africa Development Community region, including the Botswana, Johannesburg and Mauritius exchanges.

Previously, trade orders were taken physically or faxed to the exchange and then manually matched by a trader, making the system slow and prone to errors, explained LuSE general manager Beatrice Nkanza.

The new system enables investors to send their orders electronically from their offices, and the trades are then matched electronically, making the entire process quicker and more convenient, she said.

The funds to install the electronic trading system were provided by a Zambian government grant, Mrs.Nkanza revealed.

MillenniumIT specializes in the global capital market, and business development head Jit Seneviratne noted that the LuSe project is another step in the company’s foray into Africa.

The IDG News Service

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54 COMMENTS

  1. Gud news pa Zed, we are now reaching the MDG as promised by the Magandi team.
    Unfortunately you are leaving MMD’s cabinet, well done dad and enjoy the rest of your days out from the cabinet of RB 72.
    LuSE goes electronics? this is a good miles ahead.

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  2. Good Gracious Lord! You mean there hasn’t been such a system in Zed until now? Yangu tata….

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  3. #8 – There is a Chinese saying that goes “The best time to do something is 100 years ago. The next best time is NOW.”

    Congratulations are in order to LuSE.

    Remember also that LuSE is new to the system. We used to have a GRZ controlled economy. We are jsut moving over into private sector. That is why the PF manifesto is bad for business. It brings back nationalisation of industries, killing stock exchanges. Thank you for voting for RB.

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  4. Make sure its Zambians who will be employed to operate these thngs and not chinese or those (white) Afrikaans lunies

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  5. Gents this is definately good news. We need to be able to track all trends on the luse from our homes or offices. This will enable us make wise decisions on where to invest our cash. At least transacting will be easier

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  6. How do we access it, ba celtel balitungo’ga.I magine shares just keep on dropping, we dont even know if we will get our dividends

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  7. Dont just yap guys go buy some shares on LUSE no matter how little, earnings my take long but it will create a thirst for knowlegde in how markets operate and you will understand why prices of certain goods like mealie meal change at certain times. BUT WARNING DONT BORROW TO BUY SHARES I HAD A BAD EXPERIENCE WITH CELTEL SHARES THOUGH I GET COUNCELED WHEN PICTURE THE LONG TERM VIEW.

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  8. #17 Celtel does not yet have a divident policy so you might have to wait a little longer. However, dividents are usually too little and if thats the reason you bought shares you might have to reconsider the decision, too bad this is a very wrong time to pull out.

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  9. #19 you are right, selling is not the best as at now, even if they daclare dividends in the next two years it will not be more than K100per share, no wonder the warning, shares may rise or fall. we are stack with Zain

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  10. #21 K100per share is infact too big one of the best performing share on LUSE are CEC shares and last Divident payout was about K29per share and thats one of the best.

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  11. #23 anyone can benefit on LUSE the only thing you need is information i think thats what elude a lot of so called common Men mostly due to lack of interest. so all you common men get your Ten pins and buy some shares on LUSE then you can participate in the economy.sacrifice one weakend, a bottle of beer is about K7000 a share is about K700 on average from 1 beer you can get 10 or more shares. Dont just read political articals and neked protesters in the post read about the markets as well

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  12. Instead of 200 pin for weekend njikata, buy shares. You can always rely on the backing sector and hospitality, though right now the hospitality has no competition and is keeping the share price stagnant.

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  13. WELL SAID 24, AM WITH YOU ALL THE WAY.I COME ACROSS PEOPLE WHO HAVE NO IDEA WHAT THE CAPITAL MARKET IS ALL ABOUT YET THERE IS ALWAYS AN ARTICLE IN THE BUSINESS PAGES OF THE DAILY NEWSPAPERS ALMOST EVERY WEEK.THEY ONLY WANT TO READ THE OPINION PAGE AND HEADLINE ONLY……..JOIN THE BANDWAGON ZAMBIANS!!!!LETS UTILISE THE LuSE.

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  14. WELL DONE, WE ARE MOVING IN THE RIGHT DIRECTION.THANK GOD, PF DID NOT WIN, WE WILL BE LOSING OUR STAKE ON THE LUSE.MAKES US ABROAD TRADE MORE EASIER THAN BEFORE.

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  15. LUSE has come a long way – how do we access the shares over the internet. Tell us more, do just make PR statements. HOW DOES IT WORK BETTER FOR US

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  16. I agree with #26. Someone should go out there and educate the laymen how LUSE operates and encourage them to participate. Shares are better long term investments. Otherwise apamwamba and foreigners will be the only ones benefiting from LUSE activities.

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  17. finally progression!!!! no longer are we in the stone ages….technology has come to zed. in the form of electronic trading!!!!

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  18. Its about time we moved out of the Stone Age. Now we can keep track of the markets anytime, from anywhere.

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  19. At last we are embracing the 21st century! Lets hope now that the LUSE becomes one of Africa’s more prominent exchanges.

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  20. Engine. What do you mean celtel do not have a dividend policy??? There policy could be that they pay dividends when th board decides, depending on performance.

    You have to understand that a company is under no obligation to pay dividends even if it makes a profit. It could even take 10 yrs before you get a dividend. The logic is that if the company makes money, the share price increases. If you want cash now, you sell your shares at a profit (capital gain) and that will compensate for your dividend.

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  21. #36 SMAL

    did you read their brochure during the IPO. i will give you an example of CEC. they have a half yearly divident policy, meaning that every six months they will declare dividents and the divident can either be positive or negative. so every six months all share holders are informed about the company performance. As for celtel just wait for capital gain my dear they made this point clear in their brochure.

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  22. But how can one buy shares when companies are folding?
    And why shares in a company without a divident policy when that money could be used in different projects like opening a ka shabeen where the returns are massive barring competition.

    please clarify people.

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  23. #37. A company answers three fundamental questions in a dividend policy:(a)How much of its free cash should it pass on to its shareholders (b)Should it provide this cash to shareholders by raising the dividend or by repurchasing the stock and (c) should it maintain a stable, consistent payment policy, or should it let the payments vary as conditions change. The potential for future dividends and how soon is one of the most cardinal reasons people invest so for a company to say we have no dividend policy is self-defeating. Who is going to get attracted?

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  24. #38 Business is a big gamble. There is always a risk that it may fail. You are not guaranteed of success. I guess the challenge is to identify businesses that will survive this global financial melt-down. Investing in the stock market should be for the long run objective because when a country has well developed financial markets, these can be a powerful source of funds for the growth of your ka shabeen. You don’t want to be still running ka shabeen 15 years down the road.Just think of those continuous police raids!

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  25. Does anyone know anything about this MilleniumT company? How reliable are their systems? Point being that the stock market performance is directly linked to market confidence. A small glitch can easily wipe out shareholder value.

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  26. No. 39 while i agree with the point you raised, i should add that for other investors the cardinal point would be capital gains and not necessarily Divis. Some companies (in their growth stage)prefer not to declare dividends- there is nothing wrong with that.esp if they want to re-invest the free cashflows back in the business. such companies will not normally attract investors whose objective is to get an income from their investment. such investors would normally look for mature companies which consistently declare dividends

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  27. WOT MATE!! I HAVE BEEN TO THE STOCK EXCHANGE IT LOOKS OK BUT GOOD GRACIOUS ME THIS IS WEN WE USING TECHNOLOGY AT LUSE WAT THA F….(NEVERMIND)…

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  28. MIT is OK – for Africa. They would never be allowed to touch the LSE or JSE but they are good enough for us. They have done a decent job on most of the African Exchanges…the biggest worry is the Lusaka Stock Exchange and the so called brokers coping with this new system. Watch out for huge problems. In Kenya when they automated, the market was up 200% in Zed we havent heard anything at all! Time to tell

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  29. nothing wrong with Celtel open ended divi policy – why should they put themselves in handcuffs when the business is still in a grow phase! Look what happened to Chilanga when the Board suggested not to pay a dividend so that the excess cash is used for the expansion!

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  30. It’s not a shock that LuSE has operated for 14 years without an electronic platform given its low trading volumes. The index has done very well over the past few years but this year doesn’t look great. It has gone from annual gains averaging more than 50% to recording a 5.45% (5.68% in USD)decline over the past one year. I’m afraid its not the best of times for trading on the LuSE. However, the development is encouraging as it assures us of improved deal execution once the markets pick up. The next matters that need to be addressed are the provision of market information and prevention of insider dealing. This would facilitate a trully efficient market.

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  31. Wow. We finally got electronic systems underway. Zambia is way too undeveloped and its appaling. We seriously need to get more private-public partnerships instigated if the the Zambian infrastructure is to improve.

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  32. RT 5.45% gain in the current global environment is spectacular!!! The automation should have supported this with volumes but we just think it typical Zed style the Exchange was ill-prepared, the brokers have no capacity/clue even if it hit them like the A-Train. Also like with everything else coverage of politics by the media surpassed this event.

    we need a new independent paper

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  33. #50 Haha. I said the LuSE index had suffered a 5.45% decline. Even a 5.45% gain would not be impressive in a country whose inflation rate is 15.2%. Consider that the average interest rate on bank deposits in Zambia is 6.6%. Also remember that money in the bank is safer than an investment in shares. Further still, the average BOZ Treasury Bills rate is 13.5%. Since they are sovereign debt, BOZ Treasury Bills are much safer than investments in shares. Given that shares are a risky investment, one should aim for growth that exceeds:
    a)The rate of inflation (where you are based),
    b)Commercial bank interest rates and
    c)Yields on Government Bonds and Treasury Bills

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  34. “Pictures are worth a thousand words” Can I suggest that your paper includes more pictures on the stories it cover about Zambia. This will greatly benefit your paper and its readers.

    I am sure my fellow bloggers, especially those who are millions of miles away from Lusaka, sat alone in front of a pc wanting to SEE what progress their home town is making.

    LuSE goes electronic, are you kidding me, that’s big news! Sadly we have to put with mediocre and annoying flash pictures and pop-ups of another “Japan direct” advert, which is regrettably, I think, becoming the norm for a lot of African news papers.

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  35. Mr Editor, LT has the potential of becoming a very good read if you reposition the paper. This nicely brings me to another issue I would like to raise.

    The LT, which I have become a regular reader and increased your readership in the process might I add, does not have anything in the “About Us” section? The last time I checked this particular section details information about the background of the paper. For example, Welcome to Lusaka Times, the website that keeps people informed online…based in Lusaka, Zambia (Zed), and established in 19… or something to that extent? It is without question and beyond doubt not a BLOG SPACE, please you must stop this now.

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  36. I used to be suggested this web site by my cousin. I am not certain whether or not this post is written by him as nobody else understand such particular approximately my problem. You’re incredible! Thanks!

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