By BUUMBA CHIMBULU
SHARE trading activity at the Lusaka Securities Exchange (LuSE) has rebounded strongly despite reduction in the number of trades to 338 from 369.
Specifically, the volume of shares that exchanged hands surged more than 257-fold, according to the weekly financial market update prepared by the Zanaco bank.
The bank indicated that in tracing the traded volume, the weekly turnover skyrocketed more than 1380 fold to a multi-year high K1.97 billion from K1.43 million.
“The extraordinary jump in equity trading on LuSE followed Huaxin’s (a Chinese firm) purchase of Lafarge’s 75 percent stake that previously belonged to Holcim on Tuesday,” the bank indicated.
It also states that despite adverse developments during the foregoing two weeks, Zambia’s equities have largely been bullish posting a capital gain of more than 35 percent year to date in Kwachha terms having driven by improving economic conditions.
“Talking of the driver, latest data shows that private sector activity expanded for the third month running in November and at a pace never seen since June 2018,” Zanaco indicated.
Meanwhile, Zanaco stated that the Kwacha was expected to appreciate following the recent staff level agreement with the International Monetary Fund of K1.4 billion.
The bank explained that this was because development was expected to enhance sentiment positivity, there y wooing offshore investors while triggering conversation around domestic foreign exchange holders would be running away from exchange losses associated with the expected Kwacha appreciation.
