Sunday, June 16, 2024

Zambia Eurobonds Surge After Hichilema’s Landslide Win

Share

Zambia’s Eurobonds gained the most in 14 months and the kwacha surged after opposition leader Hakainde Hichilema’s shock landslide victory in the nation’s presidential election.

Hichilema beat incumbent President Edgar Lungu by almost 1 million votes and nearly 60% support, the biggest margin of victory in a quarter century and an even better performance than his party projected.

The margin of victory provides Hichilema with a strong mandate to take on reforms needed to revive an economy wrecked by years of overspending that culminated in the nation becoming Africa’s first pandemic-era sovereign defaulter in November. Annual inflation is at the highest in two decades at nearly 25%, and the economy is forecast to only narrowly avoid a second consecutive contraction this year.

The president-elect will also need to reach a deal with the International Monetary Fund for a bailout, and repair relations with copper miners operating in Zambia, Africa’s second-biggest producer of the metal.

Zambia’s $1 billion of Eurobonds due in 2024 jumped 8.7% to 72.1 cents on the dollar by 10:47 a.m. in London, the biggest gain since June 2020. The kwacha surged the most since November 2015 to 19.3150 per dollar.

Source:Bloomberg News

48 COMMENTS

  1. There you go “Bally will fix it !!!”, already fulfulling his promise. He said this was NOT possible? Kambwili, GBM, where are you?

    30
    5
  2. Continue with the lies. Speaking good English does not equate to good leadership. Running a country is not as easy as talking about it. Reality will awaken hh who has no experience in any public office. Good luck

    11
    133
  3. People said he had failed 5x and was never going to rule Zambia . The 5x setbacks were a setup for a great come back. Thormas Edison failed 10,000 times before perfecting the incandescent electric light bulb.

    52
    3
  4. @Gen K, please educate me. He hasn’t taken office yet so what could make the Kwacha to appreciate by 50 percent. Please no malice here just want to know so that I can explain to others.

    13
    2
  5. Please bear in mind that this man has no time for politics with peoples lives and therefore no time for lies. He is pragmatic and well meaning. Watch the fundamentals. You realize now what you have been resisting …

    13
    4
  6. @ De ja vu, the markets respondent to news and speculation. When the news or speculation is positive, there are ripples in the economy hence the appreciation of the kwacha. The markets are the investors. Please learn basics in financial literacy.

    22
    2
  7. Eurobonds due in 2024 jumped 8.7% to 72.1 cents on the dollar by 10:47 a.m. in London, the biggest gain since June 2020.

    ANY EXPLANATION TO THE ABOVE PLEASE? WHAT DOES RHIS MEAN?

  8. I don’t know about shock victory, we expected him to win.
    @5, currency can appreciate when someone with potential to improve the economy takes over.
    It’s the same as how a company’s shares surge downloads when celebrities publicly shun their products as was the case with Christiano Ronaldo and Coca-Cola.
    The movement of currency, much like shares, reflects future expectations.
    It is reasonable to assume that HH will run the economy better, and hence the kwacha appreciation.

    21
    2
  9. We are day dreaming, even in the magical world it takes time to make juju, change won’t come this fast bane otherwise we shall put unnecessary pressure on the party and they will make lots of blunders . For China to reach where they are they had to suffer lots but with consistency and endurance there they are. 19 billion is not a jock to return in 5 years. Just chill.

    4
    4
  10. Those are Markets reacting to his presidency!
    *Remember Markets are policy driven,so yea thats the reason you had that reaction,in other words HH predsidency has brought about investor confidence within the stock markets etc

    16
    3
  11. @Deja Vu, the gains are due to investor confidence. Even a company’s stock can rise upon the announcement of a new CEO who is viewed favourably by the market. So we should also expect more FDI to start trickling into the Country. Hope my explanation helps. Congrats to HIchilema on the resounding victory.

    10
    1
  12. Joe @7: u hv borrowed from outside forces and sell stuff to outside forces. So u hv a link to outside forces. If u don’t want these links, u hv a choice. U can be like Cuba.

    4
    2
  13. It is pointless to gloat over this victory, let us now all roll up our sleeves and get ready to work.

    I would urge the president to make sure the money that has been stolen by the outgoing thieves to be tracked and returned to Zambia.

    Mr. president, let law enforcement investigate all criminal behaviour, especially corruption and abuse of office, including theft. If needed, engage Scotland yard so we can track the stolen money. This money can be used to pay back some of the debt accrued under the thugs PF.

    I also urge you to use courts to confiscate all houses and structures built with stolen money. These can be used as hospitals and/or schools.

    Make sure that this generation and the next keep clear of corruption and theft/abuse of office.

    7
    1
  14. Kaizar boy, shut the hell up. You and Lungu had your chance and you fxxxked us 10x over.

    In your own words Kaizar, FUSEKE. kawalala iwe
    The law will soon catch up with you mambala iwe

    10
    4
  15. @S_ilk So those ” forces'” decide who to favor or something? Remember we owe Chinese lenders collosal sums in loans… explain further. No skepticism just want to learn

  16. HH has already indicated what his agenda will be. Under his administration, people are free to enjoy their rights but those rights don’t include immunity to prosecution if u have broken the law. He has made that clear.

    9
    2
  17. Mr Kaizar Zulu welcome back. Have you brought us some new insults from your new dictionary. We are ready to receive the newest version of your insults. The hate that you carry will kill. Just start to digest this piece of cake. You will be alright but you will miss tuma kickbacks.?

    5
    1
  18. Kakaiza zezulu, the time of reckoning is now. I hope you are hiding in some hole, else you are going to be snatched soon

    5
    2
  19. Former German and Bayern Munich bomber nicknamed by Karl Heinz Rummenigge as “the Muhammad Ali of the Penalty Box”, Gerd Mueller, died aged 75. The stocky defender will be remembered for the many goals he scored for club and country. I still remember those finals from the 70s and 80s between Germany and the Netherlands and Germany and Argentina.

  20. This gain is caused by Fundamental Analysis, Speculations, and Market Makers. It just means… its a confidence boost derived by HH being an Economist, a successful International Business Person and a President Elect. Then the markets will watch every thing he says, does and adjust either to go down or go up

    2
    1
  21. Jeoulusy people like KZ will never be satsified. Such people only God can deal with them because they are vicious like a poisonus snake. Only God can deal with them woowoowool.

    3
    1
  22. @10 Conistence Lwindi
    That is a very good question. If a country wants to borrow money, it issues bonds (I owe yous IOU). The bonds are usually in that country’s currency. If however, the country wants to borrow US $, it can issue bonds in US$ in a foreign dominion. If that dominion is not the US, the IOUs are looking for US$, called eurodollars, held anywhere outside the US and so are called Eurobonds. The IOU has a fixed nominal value. This is the value that GRZ will buy back the IOU at maturity. Now, the eurobond also has a market value at which the holder can sell off. It is that which has jumped to 72.1 cents per dollar.

  23. Deja Vu, the markets like good news. The Lungu administration was choking with corruption and the markets don’t like that as investor confidence is very low. The minute we have a trustworthy leader promising to rid the country of the scourge that is corruption – boom and the Kwacha appreciates. Read up about stock markets and you will take a leaf or two from there.

  24. Shame to people who do not encourage a colleague once they take a fall to get up, get dusted and keep going on! Many took HH failed attempts at winning the presidency as justifiable reason to give up but with or without the encouragement he mostly needed when fallen he gathered himself and persevered! Never say never for a nurtured strong will awards achievement! The lesson is we should never easily give up! With HH i guess its a trait that solidified when walking 11 km daily to get to school.

    1
    2
  25. PF lost the election even 5 years ago. They won because they rigg*d the elections. I think this the second time in has won.

    5
    4
  26. There was no way PF would have rigg*d this election, the wind of change was come. Despite all the project he commissioned in the last few months people were judging PF on the basis of the achievement done last 10 years. Which was zero . As Lung* surrounded himself with bad people e who’s interest were personal.

    3
    4
  27. Lastly people like KZ should now fold their tails and support the movement to the better Zambia. Hh alone can’t do it, he need the Zambian citizens to support him. I personally worked him , he is a good man and good leader.

    2
    5
  28. Politics play a major role in the external environment.It is investor confidence.Anyone who want to have transparent deals with investors can affect those changes.People outside Zambia were watching and they know that they can have return on investment before the country becomes …

  29. @Deja Vu,
    Others have given you the answer that prompted my comment above. Its basically an illustration of how the market works, once the investors have confidence in new government. Those who do trading understand this, change of government is one of the fundamentals that affects the markets either upwards or downwards.
    Unfortunately, id.iots like Kambwili dont understand this, they were mocking HH, when he said zambian kwacha will appreciate once they come in power. Others above have provided you with additional details, which should answer your questions.

    2
    1
  30. @ 2 Kaizer Zulu

    In his maiden address to the press as Republican President Elect yesterday, His Excellency Hakainde Hichilema clearly set the tone for serious business ahead. Noteworthy was his message against fighting each other post elections. We could shoot at you, justifiably so considering your views over the past months/years, but we choose to be bigger than that and embrace you. Let us differ on opinions, but reinstate the spirit of BUNTU that we are renowned for.

    It is time to accept that change has happened and continue forward as One Zambia One Nation. I’m so happy to be a Tonga at this moment, but I believe we need to hold hands as a people across tribe and look beyond cultural differences because we one at the end of the day.

    Tone down on your tribal talk my dear…

    2
    1
  31. Nothing tribal about my comment . ******Deleted….You are not permitted to use this platform to spread lies and misinformation.*************

  32. “….and repair relations with copper miners operating in Zambia,…” Which miners??? FQM, Glencore, Barrick, etc are not complaining about anything are they?? It’s vedanta, who hh allegedly got some money from, who Bloomberg are talking about.

  33. So, now that Us Easterners voted for HH in thousands he is quiet after accusing us that we are Malawians and Mozambiqians, whenever He lost..
    We do not vote on tribal lines. But if the trend (tribal voting) continues in southern province then we will change colours,”Mwana aka lila bonzo mupase”. They will test their own bitter medicine one day. You are already insulting Lungu and Zulu, all Easterners.

  34. Lusaka times aka upnd times, stop trying to impress upnd by moderating my freedom of speech. We know you think that by siding with upnd you will get benefits or favours. Don’t be cheap. Out of all the upnd insults you choose to moderate my comments. You can’t stop the truth and I won’t be silenced. The only reason you have a huge following is because of me. People only come here because they want to know what kz said. Grow up

    1
    1

Comments are closed.

Read more

Local News

Discover more from Lusaka Times-Zambia's Leading Online News Site - LusakaTimes.com

Subscribe now to keep reading and get access to the full archive.

Continue reading