By BUUMBA CHIMBULU
INVESTOR optimism in Zambia’s future economic fortunes of private sector players has continued as seen by their participation in Government paper.
In an emphatic show of optimism in the country’s economic prospects, the bond auction last week received a fresh record-setting bid amount of K7.641 billion at cost against K1.50 billion on offer.
The development revealed expression of investor optimism in the future economic fortunes of the country’s private sector players, according to the Zanaco weekly financial markets update.
“Although overall activity was down, net purchases by non-resident equity investors surged 7.2 percent to K3.87 million (almost two-thirds of the total turnover for the week) from the prior week’s K3.61 million,” the report stated.
It indicated that of the total bid amount, only K2. 50 billion was allocated leading to an effective subscription rate of 166.7 percent, up 57.4 percentage points from the July feat.
Meanwhile, the report stated that coming from a more than five-month high pulse, share trading activity at Lusaka Securities Exchange cooled but appetite from offshore equity investors was up.
“With the number of trades falling to 141 from 316, the volume of traded shares declined 57.3 percent to 5, 063, 840 (second highest in 6 weeks) from 11, 865, 460.
“In line with the fall in traded volumes, the weekly turnover dived 70.5 percent to K5.22 million from K17. 70 million,” the report stated.