LUSAKA STOCK EXCHANGE 4TH QUARTER 2013 MARKET PERFORMANCE EQUITY MARKET Q4 MARKET TRADING STATISTICS 2013 2012 Market Capitalisation LASI Trades Volume Turnover ZMW Turnover/ Market Cap ratio

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58,188,000,000 5300.1 1389 68,974,033 70,550,876 0.42%

% Change (Quarterly) 17.26% 42.70% 17.51% -83.83% 132.96%

49,624,691,000 3714.16 1182 426,664,719 30,284,798 0.73%

Market capitalization closed the quarter under review at K58 billion reflecting a 17% rise over the same period in 2012.

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The LuSE All Share Index (LASI) closed the period at 5,300.1 points, 43% up from the same period in 2012. The LASI gained 10.5% over the three months to 31st December, 2013.

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The movement in the LASI can be attributed to the increase in the number of shares in some stocks due to rights issues and the capital gains recorded in some stocks

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Top 4 Gainers above and below the LASI were as follows: CAPITAL GAINS IN RELATION TO THE LASI RETURN Security

Dec-13

Q4-% Change

15.75

34.50%

Standard Chartered Bank

1.93

28.67%

Zanaco

0.30

25.00%

0.65 5300.10

18.18% 10.49%

Copperbelt Energy Corporation

0.73

7.35%

British American Tobacco

4.76

5.78%

Prima - Re

3.00

3.09%

Lafarge

Pamodzi LASI

Bata Shoe

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0.76

2.70%

Volume of shares traded was significantly lower than that of the previous period due to share consolidation conducted by Zambia Sugar due to the rebasing of the local currency.

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In the same period for 2012 the early quarter spike in volume can be attributed to the CCHZ claw back rights offer. However, the shares were consolidated towards the end of the quarter.

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Trade Turnover increased significantly by 133% compared to the same period for the previous year. This was mainly due to the increase in volumes of shares by Prima Re after a rights issue where a total of 6,612,424 shares were taken up by existing shareholders.

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There was an increase of 29% in foreign portfolio inflows over the period compared to the same period in 2012.

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24% of shares transacted during the quarter were from foreign transactions. This was a notable increase from the corresponding quarter of 2012 where 4.5% of shares transacted were attributed to foreign portfolio investors.

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The market is steadily becoming an information sensitive market where investors respond to corporate announcements and the general performance of the economy.

DEBT MARKET

Secondary market activity in Government Bonds showed gains in the period under review. An increase of 40% was recorded in bond activity for the quarter under review. 2014 OUTLOOK •

The LuSE will be commemorating its 20th anniversary on 21st February, 2014 and a number of events will be undertaken in the week leading to this day as well as throughout the year.

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Listed companies with free floats below the required minimum of 25% are expected to take action to increase their free floats.

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National sensitization roadshows by the LuSE/SEC/PSDRP will be conducted to explain the LuSE Alternative Market to targeted companies.

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Project Nkhunzi – the LuSE demutualization process is scheduled to conclude the first phase.

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New listings on both the equity and debt markets and rights issues are expected in the year

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The Exchange will be conducting compliance workshops for listed companies and the general public to understand the changes to the Listing Rules and improve compliance.

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Interventions will also be put in place to streamline the conduct of bond trading especially trading of GRZ Bonds

QUARTER CORPORATE ACTIONS AEL ZAMBIA PLC - EXTRAORDINARY GENERAL MEETING –

SPECIAL RESOLUTION that the entire ZMW 40,813.20, issued share capital of the Company comprising 20,406,600 ordinary shares of par value ZMW 0.002 each be converted into stock of ZMW 40,813.20 comprising One (1) stock with a nominal value of ZMW40,813.20 and held jointly both legally and beneficially by the shareholders of the Company as at the date hereof in proportion to their holding of ordinary shares in the Company as at the date hereof and immediately thereafter the One (1) stock of ZMW40,813.20 be re-converted into 20,406,600 issued ordinary shares of par value ZMW 0.01. ZANACO PLC-CAUTIONARY UPDATE

Shareholders were advised that on December 20, 2011, the Company had received formal notification from the Ministry of Justice that the Government of the Republic of Zambia (“GRZ”) had instituted a Commission of Inquiry into the partial privatization of ZANACO in 2007(“the Inquiry”). Shareholders are advised to continue to exercise caution when dealing in the Company’s securities until the Commission of Inquiry process is concluded and a full announcement is made. AIRTEL NETWORKS ZAMBIA- DIVIDEND PAYMENT

Airtel Networks Zambia Plc on Tuesday 12 September 2013 approved the payment of an interim dividend of K1.25 per ordinary share, payable to the shareholders registered in the share register of the Company at the Close of business on 1 November 2013. Dividend payment will be effected on or before December 27, 2013. PRIMA RE- RESULTS OF THE RIGHTS OFFER

After the Rights offer, a total of 30,000,000 shares were in issue and the total shares taken up by existing shareholders were 17,612,449. The purchase of Rights over the LuSE after the Rights offer was 8,150,333. The Shares underwritten were 4,237,218, giving a total of 30,000,000. ZAMBIA SUGAR PLC- DIVIDEND PAYMENT

Zambia Sugar Plc on 8 November approved the payment of an interim dividend, for the six months ended 30 September 2013 of ZMW0.08 per share (2012: ZMW0.08, payable to the shareholders registered in the share register of the Company at the close of

business on 6 December 2013. The dividend payment will be effected on 9 December 2013. ZAMBIAN BREWERIES PLC- DIVIDEND PAYMENT

The Board resolved not to recommend an interim dividend payment for the half year ended 30 September 2013. NATIONAL BREWERIES PLC- DIVIDEND PAYMENT

The Board resolved not to recommend an interim dividend payment for the half year ended 30 September 2013. COPPERBELT ENERGY CORPORATION PLC -FIRST CAUTIONARY ANNOUNCEMENT

Shareholders are advised that there are circumstances relating to the Company, the full impact of which are currently being determined and which may have a material effect on the price of the Company’s securities. These circumstances relate to the fact that the Company has received notification from its majority shareholder, Zambian Energy Corporation (“Ireland”) Limited (“ZECI”) that there is a proposed internal reorganization in the ultimate shareholding of ZECI. This caution comes prior to the renounceable rights offer which will be later announced in January 2014.