Savings in Zambia’s capital markets as at September 30, 2023 substantially increased by 68.26 percent to over K85 billion, largely driven by fund size increase in corporate bonds.
Another factor, which led to this expansion from K79 billion recorded in June this year, was the growth in the number of investors as well as the portfolio size in both local and foreign collective investment schemes.
This is according to the Securities and Exchange Commission (SEC) Chief Executive Officer, Phillip Chitalu, at the media briefing to announce the Performance of the Capital Market for the third quarter of 2023 in Lusaka on Monday.
“An analysis of the Capital markets as of September 30, 2023 against June, 30 2023 showed that the total savings in the capital markets substantially increased by 68.26 percent, largely driven by fund size increase in corporate bonds and the growth in the number of investors and the portfolio size in both local and foreign collective investment schemes,” Chitalu said.
He pointed out that the start of the third quarter of 2023 brought changing conditions in the capital markets such as increased interest rates given the on-going significant dynamics in economic fundamentals.
Chitalu cited the Secondary Bond Market as one of the areas which had registered improved investor participation.
“There have also been significant improvements in the number of players willing to come to the capital market evidenced by the increase in the number of licence applications among others.
“However, for some time now, the market has remained stagnant on the number of listed entities,” he regretted.
On the total market capitalisation, Chitalu stated that it had increased by about 6.93 percent to over K82 billion as at September 30, 2023 relative to the figure of June 30, 2023.
According to Chitalu, this included Shoprite Holdings Plc.
The growth indicated the market capitalisation as a percentage of Gross Domestic Product (GDP) at 18.52 percent at the end of September.
“This was mainly driven by share price increases in the listed companies including Airtel Zambia Plc, Copperbelt Energy Corporation Zambia Plc, Zambia Consolidated Copper Mines-IH, Zambia National Commercial Bank (ZANACO), PUMA Energy Plc and Real Estate Investments Zambia Plc (REIZ),” Chitalu said.
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