The bourse in Africa’s second-largest copper producer Zambia, the Lusaka Securities Exchange (LuSE) has outperformed the continent’s stock markets with its share index flirting with a fresh all-time high on August 24 to 7,010.4. Trading 15.7% (YTD) firmer in, local currency terms, the index is in dollar terms 19.3% stronger, surpassing the S&P500 index and previous scoreboard winner, the Nigerian Stock Exchange (NSE) currently at 16.3% (YTD). Stock market outperformance for the red metal producer is a barometric indication of its growth and economic recovery prospects underpinning faculties such as mining, banking, energy, manufacturing and agribusiness. This is to a…
Author: The Editor
Zambia continues to lead its peers in Africa after the Lusaka Securities Exchange All Share Index rebounded to a 3 point whisker level below its all time high at 7,006.3. This resilient stock performance by stocks surpasses that of the bond market. Stock prices in general are trading 19.19% stronger than bonds which close to 400 basis point below in dollarized terms. Supporting the LASI rally are the following stocks Zambeef (ISIN:ZM0000000201) , Zanaco (ISIN:ZM0000000250), Copperbelt Energy Corporation (ISIN:ZM0000000136) and Zambia Sugar (ISIN:ZM0000000052) on account of risk appetite seeping back into the Zambian market post pandemic. Another strong driver of…
Post COVID19 recovery is spelling sales recovery prospects for Anheuser – Busch InBev subsidiary Zambian Breweries Plc that grew its top line by 27% in 1H22 to K1.64 billion according to stock exchange news release on the local bourse. Demand fundamentals have restored to pre-pandemic levels and this has continued to support business for the brewer. However the Lusaka Securities Exchange listed brewer incurred a 473% widening in financing costs, likely on account of rising dollarized interest costs, that softened after tax earning 19% to K72.9 million. READ ALSO: Despite Zambrew’s FY21 YoY Earnings Stellar Sprint, Global Wheat and Barley…
One of the landmark developments in Africa’s copper producer Zambia, characterizing central banking reforms, is the recent enactment of law that shields governors and their deputies from being sacked with no valid reasons. Zambia’s head of state Hakainde Hichilema has signed into law a new legislation that will protect the Bank of Zambia governor and his deputies from being relieved of their duties without valid reasons. The BOZ Act No. 5 of 2022 prescribes for the President to constitute a three man tribunal led by a judge or former judge for the purpose of probing any allegations leveled against central…
Against the odds, the bond sale in Africa’s red metal hotspot Zambia was deeply undersubscribed with the Bank of Zambia raising only about K1.4 billion representing, just over half what the target auction size was. With eager anticipation of bailout from the International Monetary Fund, markets would expect soared interest in Kwacha assets which ideally was forecast. However the outcome of the August fixed income sale just confirms the state of global environment, currently risk off with most offshore players seeking safer haven in dollar denominated assets as confirmed by the DXY index against a basket of 6 major currencies,…
Zambia’s central bank has maintained its benchmark interest rate at 9% for the second time in a row. This was announced at a press briefing in Lusaka by Governor Dr. Denny Kalyalya. The monetary policy committee in its penultimate session of 2022 commended two day deliberations on Monday August 15. Supporting the decision, Dr. Kalyalya cited single single digit inflation a trajectory attained in the May headlines levels. READ ALSO: Seventy Five Percent of Economists and Financial Analysts Polled see BOZ Holding Rates However the Bank of Zambia remains weary of rising inflationary pressures from crude price volatilities as a consequence…
The central bank in Africa’s second largest red metal producer Zambia will tomorrow announce its monetary policy stance in its August session. A poll done on 16 economists and financial analysts across the market reveals that 75% are of the view that the rate decision committee will keep rates unchanged at 9.0% while 12% of those polled expect a 50 basis point hike, with 6.3% expecting a 100 basis point increase. One homogenous factor across 88% of the economists and financial analysts surveyed is that global financial conditions remain a source of concern. In the labyrinth of a debt restructure,…
With the Kwacha bond index a few points below an all time high of 290.4, the central bank in Africa’s red metal hotspot could see increased interest in its bond sale on August 19, ahead of strong optimism surrounding widening odds of a deal with the International Monetary Fund. The Bank of Zambia will seek to raise K2.6 billion in a 2,3 and 5 year re-issuance while the rest of the tenors will be fresh issuances. The bond sale comes two days after the penultimate rate decision meeting of the year 2022 in a period that markets are fairly more…
The monetary policy committee in Africa’s red metal hotspot will on Monday 15 August commence two day deliberations on the pen ultimate rate stance of 2022. May MPC kept rates unchanged at 9.0% while the Bank of Zambia was weary of the morphing global risk environment marred by excessive inflation and dislocated grain markets. As per tradition the announcement will be made on the third day which falls on Wednesday 17 August by the central bank governor, Dr. Denny Kalyalya. This August session will have persistent world inflationary pressures but with recessionary fears given a sag in copper prices and…
It’s Friday August 12, 2022 and the mood in Africa’s second largest copper producer Zambia is skewing towards fully optimistic from earlier optimism with caution. The Southern African nation reflects significant strides in its macros such as successfully taming inflation to single digit levels, though a few points above the Bank of Zambia target, positive growth but at rates lower than pandemic times and resilient private sector pulse as confidence continues to seep into the debt burdened economy. The Jesuit Centre for Theological Reflection shared its July monthly food basket numbers showing an increase in the cost of living yet…