Author: The Editor

A series of market events ranging from market euphoria to liquidity tightening has clouded the Zambian market this week. Starting the week with a new finance Minister was a shocker to the markets sending the worst performing frontier market bonds to most preferred overnight. China continues to impact the base metal markets as Brexit risks creep in thick as deadline draws nigh. MARKET EUPHORIA: An autopsy of Zambia’s Finance Ministry latest appointment that saw former central bank Deputy Governor appointed to head the fiscal unit of government. This is the second central banker to be appointed to the fiscal management…

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KWACHA PERFORMANCE: The copper currency remains firm at 12.51 for a dollar unit from previous session of 12.55. We remain optimistic that the Kwacha will remain vulnerable to further rallies driven by the short cash market positions which have triggered central bank presence in Open Market Operations (OMO), injecting liquidity just to plug the lacuna. With the tax season open to the 16 July, the market is absorbing Kwacha at a fast pace with a flurry of dollar conversions to raise Kwacha funding for players long foreign currency. Some analysts view the recent rally as unsustainable and artificial given the…

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