Malawi Freedom Network 
By Lovemore Lubinda
Zambia’s Lusaka Stock Exchange ended the week on a softer note despite a sharp jump in trading activity, as heavy turnover in Copperbelt Energy Corporation (CEC) masked a largely quiet market for price movement.
The Lusaka All Share Index (LASI) excluding ZCCM-IH slipped 0.20% week-on-week to close at 25,871.69 points, according to market commentary from Stockbrokers Zambia Limited.
The decline in the benchmark came even as market liquidity surged. Total turnover for the week jumped to ZMW 78.56 million, about USD 4.02 million, on 5.37 million shares traded, a more than threefold increase from the previous week’s ZMW 24.99 million, or USD 1.28 million, on 1.77 million shares.
The spike was driven almost entirely by one counter. CEC accounted for 92.18% of total market turnover, underscoring continued investor appetite for the power utility, which remains central to Zambia’s mining-driven economy and the region’s electricity supply.
Activity in alternative asset classes remained thin. The market’s listed Real Estate Investment Trust, Real Estate USD, traded just 56,848 units during the week, generating turnover of USD 6,571, or ZMW 127,991.
Price action across the bourse was muted, with no significant moves recorded. British American Tobacco Zambia (BATZ) was the week’s lead gainer, rising ZMW 0.03, or about 0.23%, to close at ZMW 13.00, equivalent to around USD 0.67. On the losing side, Zambia Sugar (ZSUG) shed ZMW 0.02, down 0.03%, to close at ZMW 69.95.
Analysts said the week’s pattern – falling index, rising turnover concentrated in a single stock, and minimal price changes elsewhere – points to a market still dominated by selective institutional trading rather than broad-based retail participation.
In other news, the Zambian Kwacha has had a two-speed run over the past two months, surging to become Africa’s best-performing currency in August before giving up ground in September.
In August, the Kwacha appreciated sharply. Data from Bank of Zambia and ZamStats show it strengthened to around K19.04 per US dollar in August 2026, compared to K23.58 in August 2025 – an appreciation of 19.25% year-on-year.
On the day President Hakainde Hichilema was declared winner of the August 13 election with 60.5% of the vote, the Kwacha firmed 0.8% to 18.78, with the Ministry of Finance noting an average of K18.54 in Q2 2026 versus K24.55 a year earlier.
The rally was driven by four factors.
First, debt restructuring progress – external debt fell 5% to $15.36 billion by June 2026 from $16.15 billion in December 2025. Second, improved investor confidence ahead of policy continuity. Third, strong copper exports, with 447,182 tonnes produced in H1 2026, and fourth, tight monetary policy. Inflation anchored the gains, cooling to 6.2% in August, the lowest since February 2018 and within Bank of Zambia’s 6-8% target band.
The Bank of Zambia added stimulus on August 3, cutting the Statutory Reserve Ratio on Kwacha deposits from 26% to 21%, releasing billions into the banking system for lending. Analysts read it as a signal that stability had been achieved after years of tight policy.
September has reversed the momentum.
The Kwacha weakened from about 19.03 per dollar on August 27 to 19.51 on September 26, a monthly depreciation of 2.5%, with Reuters and Access Bank quoting 19.94 by mid-September from 19.53 a week earlier. 17d68bf2
Traders attribute the slide to strong corporate and import-related demand for dollars, particularly from energy importers, as global oil prices rose. The weekly drop of 2.10% was the largest among major African currencies surveyed last week.
Zambia’s currency was hit by higher global energy prices despite elevated copper prices, slowing inflation and calmer politics after the election.
The near-term outlook is for consolidation rather than a sharp fall. Access Bank expects high copper prices and subdued speculative activity to limit depreciation, while the Bank of Zambia retains $6.5 billion in reserves and intervention capacity.
For a currency that appreciated 24.5% year-on-year in Q2, the September pullback looks like profit-taking and import-season dollar demand, not a return to 2024-2025 weakness.
