ZAMBIA’S CAPITAL MARKET RESILIENT IN FIRST QUARTER

ZAMBIA’S capital market remained resilient in the first quarter of this year, resulting in total savings of over K77.35 billion.

The sector’s financial market’s total savings increase by 3.04 percent to over K77.35bn from about K75.07bn previously.

According to the SEC Chief Executive Officer Phillip Chitalu, the market capitalisation also increased by three percent to K75.04bn as at March 31, 2023 from K72.87bn in January.

Mr Chitalu said this at the first quarter performance of the capital market briefing on Tuesday.

"This was mainly driven by share price increases in the listed companies including Copperbelt Energy Corporation, Airtel Zambia, Puma, Standard Chartered Bank, Zanaco and ZAMEFA," he said.

He also highlighted that during the period under review, the amount of corporate bonds outstanding was K441 million, representing a 14 percent reduction in relation to the same period last year.

Mr Chitalu attributed the reduction to redemption of notes, maturities and foreign effects on dollar denominated notes.

He indicated that the corporate bond maturities amounted to K53.9m which was largely made up of a K50m maturity by one issuer. "On the other hand, translation effects on foreign currency denominated notes amount K17.8m owing to the depreciation of the Kwacha during the period.

“Although there were no new issuers of corporate bonds during the review period, corporate bonds in a favourable economic environment are an alternative source of funding are an alternative for issuers and are ideal for project financing as they are long term in nature," he said.

On government bonds, Mr Chitalu said the yield rates for government bonds in the primary market issuance increased for all tenors.

He said during the course of the first quarter, yields rates on all government bond tenures except the 10-year bond remained unchanged at 17.5 percent for the two-year bond, 22 percent for three-year bond, 24 percent for the five-year bond, 25.4 percent for the 10-year bond and 27.75 percent for the 15-year bond.

"The 10-year bond increased by 40 basis points in the first quarter of 2023," Mr Chitalu said.