A red rose depicting how attractive the 5 year bonds are priced but this could just signal interest rate repricing risks in the Kwacha term debt market,
Author: The Editor
Standard Bank Africa Head Office on 30 Baker Street in Rosebank, Johannesburg.
With approximately K625million long cash on 15 October, an autopsy effect of the K2billion of tax (provisional) outflows, K1billion in treasury bill settlement offset by K300million in maturities (as at Monday 14 October), it is very unlikely that Thursdays bond sale may have adequate purchasing power to absorb K1.65billion of fixed income assets on offer). The current market liquidity signals a potential deep subscription haircut unless the state pension fund steps in to bridge the appetite. Cash flush markets have for the last 4-5 weeks been a result of value added tax refunds that have assisted in supporting the last…
Liquidity is very interesting concept that many have interpreted depending on background and respective faculty. To accountants it’s the ability to convert assets into cash or near cash but for non accountants and financial risk managers or engineers, liquidity can mean a lot of things. I have taken time to explain the concept of liquidity by redefining what ‘illiquidity’ is. What is illiquidity? The following scenarios illustrate the concept of illiquidity to help us comprehend the finical concept: When a market has assets yet players aren’t interested in buying them because of unattractive pricing, that can be dubbed as illiquidity.…
The central bank in Africa’s red metal producer sold a yard (K1billion) worth of treasury bills. With a K1.5billion liquidity into Thursday 11 October sale, purchasing power was adequate to absorb the K950million of short date assets representing 106% subscription rate. Market appetite totalled K1.25billion of which 65% (K806million) was in the one year yielding 27.5% while K288million was recorded interest for 9 month paper priced 100 basis points lower that the 1 year at 26.5%. Thursdays treasury bill outcome is the third oversubscription of the year of the 21 debt sales supported by excess liquidity aftermath of value added…
Lusaka Securities Exchange – LuSE listed Zambeef (ZMBF -ISIN0000000121) is this time in the news not for winter maize harvest or crop diversification but for soccer reasons gravitating around lightening rugby boots. These boots have been endorsed and nodded by Former England Rugby Union International and World Cup winner and founder of the Atlas Foundation Jason Leonard. The Briton has been knocked sideways by the quality of locally produced rugby and soccer boots called ‘kaleza’, which is a vernacular word for lightening. The popular Z-12 boots made by Zamleather, a Zambeef Plc division specialising in leather processing and tanning are…
A sugar processing plant at Nakambala estate in Zambia’s sweetest town of Mazabuka.
Lusaka Securities Exchange listed Zambeef Plc (ZMBF-ISIN0000000201), on 04 October launched its winter maize harvest in Zambia’s ‘maize-belt’. This development was graced by Zambia’s Head of State who appreciated the efforts Zambeef is making in crop diversification to hedge against drought effects given the hydrological risks the copper producer faces. Zambia’s drought is said to be the worst since 1985 but this has not stopped the company from employing irrigation methodology to grow maize outside the traditional season. Zambia’s 2018/2019 maize yields slid 400,000 metric tones to 2million due to lower than forecast rains. Speaking in Sinazongwe, President Lungu commented:“In…
Niyi Adeleye, Head of Real Estate Finance for Africa Regions at Standard Bank, of which Stanbic Bank Zambia is a member.
Zambian Breweries manufacturing and packaging plant. Zambrew has the largest market capitalization on the Lusaka Securities Exchange – LuSE.